Dow Average Increases 1.9% to Record 16,171.12 at Close
Mexico Stocks: Genomma, Gruma, Cemex, Corp. Geo Were Active
The following companies had unusual price changes in Mexico trading. Stock symbols are in parentheses and prices are as of the close of trading.
The IPC index gained 0.3 percent to 38,258.45.
Genomma Lab Internacional SAB (LABB) slid 3.5 percent to 24.4 pesos after nominating a slate of members to the board of hostile takeover target Prestige Brands Holdings, Inc. The new board members will offer “independent judgment” on Genomma’s proposal after Prestige’s current board rejected the transaction, Genomma said yesterday in a statement.
“We believe Genomma is trying to keep open all potential avenues to take control of Prestige,” Joaquin Ley, an analyst at Banco Santander SA in Mexico City, said in a research note dated today. He recommends buying the shares.
Gruma SAB (GRUMAB) , Mexico’s biggest maker of corn flour for tortillas, added 4.7 percent to 34.24 pesos, extending gains after reaching a four-year high yesterday. Banco Santander SA reiterated its buy rating on the stock and raised its year-end target price to 40 pesos in a note dated yesterday, citing expected growth in the U.S.
Construction-related companies declined after the Thomson Reuters/University of Michigan preliminary index of U.S. consumer sentiment fell to 74.3, the lowest this year.
Cemex SAB (CEMEXCPO MM), the largest cement maker in the Americas, dropped 3.7 percent to 9.56 pesos. Corp. Geo SAB (GEOB) , Mexico’s second-largest homebuilder, slid 2.6 percent to 20.4 pesos.
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