Cemex shares tumble on poor growth forecasts

Cemex SAB, the only Mexican stock that analysts universally recommend buying, fell to the lowest level in more than three years as concern over global growth damped the outlook for construction materials and the peso sank to a record, Bloomberg reports.

Yesterday, shares fell 7.4% to 8.31 pesos at 2:24 pm in Mexico City, the lowest since August 2012.

Mexico’s benchmark IPC dropped 2.5% as the peso touched a record 17.8054 per dollar Thursday, swelling the size of Cemex’s overseas debt obligations in local terms.

Cemex has dropped for four straight days at the start of this year after falling 35% last year amid what chief executive Fernando Gonzalez said in October was the “unprecedented strength of the US dollar versus most of the currencies in our markets.”

All 10 analysts surveyed by Bloomberg recommend buying Cemex shares, making it the only unanimous buy on the IPC. While stocks are tumbling worldwide, Cemex may be particularly affected by global growth concerns, according to Jorge Lagunas, head of equity strategy, sales and trading at Interacciones Casa de Bolsa SA. Cemex is “the Mexican business that’s most linked to the global economic environment,” he said in an e-mail.

Just 19% of Cemex’s revenue comes from Mexico while 98% of its bonds are denominated in overseas currencies, according to data compiled by Bloomberg.

Jorge Perez, a spokesman for Monterrey, Mexico-based Cemex, declined to comment on the impact of the peso’s decline and global growth concerns on the share price.

Source
Bloomberg

(Visited 94 times, 1 visits today)

Get involved

Register

As a member of this site you will be able to receive aggregates news relating only to those categories that are most relevant to you, submit job listings for FREE, post questions in the Q&A, and more.

Register Now

Feature your company

The Feature Your Company listing is your custom-made (by us) profile page that allows you to add any of the following content: text, videos, links, images. The page will also be listed on the Featured Company landing page. Over 560 unique aggregates users visit the site per day! Complete the enquiry form now to contact us.

Contact us

Jobs

Are you looking for an aggregate related job? Click here to see our jobs listing supplied by industry experts United Employment.

See Jobs

Advertise

Reach thousands of budget holders and decision makers by promoting your company on the longest established aggregate website in the US & Canada. Or advertise in our emails which are sent to opted-in subscribers according to their chosen categories. All advertising will display correctly on tablets and mobiles as this site is responsive.