America Movil Rallies in Mexico City, Snapping Decline
America Movil SAB (AMXL), the carrier with 70 percent of Mexico’s mobile subscribers, rallied the most in 10 months on speculation the telecommunications bill won’t be as hard on the company as some traders had expected.
The stock jumped 4.2 percent to 12.33 pesos at 11:35 a.m. in Mexico City trading, the biggest increase on a closing basis since May 7. The company was the best performer on the country’s benchmark IPC index, which rose 0.7 percent.
Shares fell 13 percent in the previous three days on speculation the telecommunications bill designed to spur competition in the industry would reduce Mexico City-based America Movil’s market share.
The stock’s plunge over the past three days was “a little bit over the top,” Andres Medina-Mora, an analyst at Corporativo GBM SAB in Sao Paulo, said in a telephone interview. He rates America Movil the equivalent of buy.
To contact the reporter on this story: Danielle Verbrigghe in New York at dverbrigghe@bloomberg.net
To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net
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