Mexico's Cemex Tumbles Most in Seven Months on U.S. Home Sales
Mexico’s Cemex Tumbles Most in Seven Months
Susana Gonzalez/Bloomberg
A Cemex SA worker stacks cement mix sacks at the company's Monterrey, Mexico, distribution facility.
A Cemex SA worker stacks cement mix sacks at the company's Monterrey, Mexico, distribution facility. Photographer: Susana Gonzalez/Bloomberg
Aug. 24 (Bloomberg) -- Robert Shiller, an economics professor at Yale University and chief economist at MacroMarkets LLC, and Stan Humphries, chief economist at Zillow Inc., talk about the outlook for the U.S. housing market. Sales of existing homes plummeted 27.2 percent to a 3.83 million annual rate, the National Association of Realtors said. Shiller and Humphries speak with Matt Miller on Bloomberg Television's "Street Smart." (Source: Bloomberg)
Cemex SAB, the largest cement maker in the Americas, dropped the most in seven months in Mexico City trading after plunging sales of existing U.S. homes signaled cement demand may miss expectations.
Cemex dropped as much as 7.2 percent to 9.83 pesos, the most since Jan. 27. Shares were 4.6 percent lower at 10.10 pesos at 12:44 p.m. New York time.
Sales of U.S. previously owned homes dropped 27 percent in July, twice as much as forecast, to a 3.83 million annual pace, figures from the National Association of Realtors showed today in Washington.
“These figures suggest the recovery will be slower than expected,” Gonzalo Fernandez, a Mexico City-based analyst with Banco Santander SA, said in a telephone interview.
Demand for single-family houses dropped to a 15-year low and the number of homes on the market swelled, the report showed. Economists projected sales would fall 13 percent from June’s previously reported 5.37 million pace.
Cemex is the company in Mexico’s benchmark IPC stock index with greatest exposure to the U.S. economy, according to Fernandez.
The index fell 1.5 percent to 31,656.39.
To contact the reporter on this story: Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net.
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