Grupo Elektra SA, the retail and banking company controlled by billionaire Ricardo Salinas, rallied the most in a month after Mexico’s stock-exchange operator said the shares will remain on the benchmark IPC index.
Elektra’s weight on the index will fall to 2.04 percent from 2.09 percent beginning Sept. 3, Bolsa Mexicana (BOLSAA) de Valores SAB said yesterday in a filing. Elektra was able to retain its place on the gauge after obtaining a court injunction forcing the stock exchange to use an older methodology to determine its weighting. The Bolsa didn’t say whether Elektra would have remained on the index under the new methodology, which accounts for shares that are restricted by derivative contracts.
Shares rose 4.7 percent to 646.31 pesos at the close of trading, the biggest one-day advance since July 17.
“We see a very strong growth potential for Elektra,” Leon Cabrera, a trader at CI Casa de Bolsa, said in a telephone interview from Mexico City. The brokerage has a price target of 850 pesos for the shares.
Salinas’s company is suing the Bolsa for unspecified damages after the exchange operator’s announcement of a new methodology on April 11 led to a drop of as much as 68 percent in Elektra shares. Investors including Van Eck Associates and Intercam Casa de Bolsa SA said then that the new rules had cast doubt on Elektra’s ability to remain on the index.
Elektra had derivative contracts tied to its stock price representing about 14 percent of its shares as of June 19, down from about 23 percent at the end of 2010. Salinas and his family controlled 70.5 percent of shares at the end of last year.
The Bolsa’s new rules specify that to be included in the IPC, a company must have 12 percent of its outstanding shares freely traded, not held by a controlling shareholder or withheld from trading because they are being held as a hedge in a derivative contract.
Dan McCosh, an Elektra spokesman, declined to comment.
Elektra shares are down 49 percent from their closing price April 11, having recovered from a low of 408.79 pesos June 18.
Of the remaining 31 stocks on the index, only three will increase their weighting: America Movil (AMXL) SAB, Wal-Mart de Mexico SAB and the Bolsa itself. Grupo Aeroportuario del Pacifico SAB’s weight will decline the most, down 35 percent to 0.61 percent, according to yesterday’s filing and to data compiled by Bloomberg. Genomma Lab Internacional SAB (LABB)’s weight will be little changed at 0.99 percent.
The Bolsa did apply its new methodology to the other stocks in the IPC. Grupo Financiero Inbursa SAB jumped 12 percent to a record high and Coca-Cola Femsa (KOF:US) SAB rose 5.7 percent after the Bolsa announced they would join the benchmark IPC index. Industrias CH SAB and Alpek SAB, who are also joining, both posted gains.
Of the companies leaving the index, Organizacion Soriana SAB was the hardest-hit, falling 8.4 percent today, the most since February 2009. Consorcio Ara (ARA*) SAB, Controladora Comercial Mexicana SAB and Axtel SAB will also leave the index.
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