Industrias CH Surges on Infrastructure Plan: Mexico City Mover

Industrias CH SAB (ICHB), Mexico’s largest steelmaker, surged the most on the nation’s benchmark index after President Enrique Pena Nieto announced a $315 billion plan to build railways, bridges and other infrastructure.

The shares surged 4.2 percent to 84.9 pesos at 1:13 p.m. in Mexico City, according to data compiled by Bloomberg. It was the biggest gainer on the country’s IPC index, which advanced 0.2 percent.

The federal government seeks public and private investment of at least 4 trillion pesos ($315 billion) on public works through 2018, including three passenger rail lines and two urban commuter rail lines, Pena Nieto said at an event today in Mexico City. Industrias CH’s shares had lost 17 percent this year through July 12 amid reports showing declines in domestic steel demand.

“The national infrastructure plan means a lot for ports, highways, electricity plants, oil platforms,” Raul Ochoa, an analyst at Interacciones Casa de Bolsa, said in a telephone interview from Mexico City. “All of this needs steel.” The brokerage firm has a hold recommendation on Industrias CH’s shares.

Empresas ICA SAB, the nation’s biggest construction company, advanced 2.7 percent to 25.36 pesos.

To contact the reporter on this story: Ben Bain in Mexico City at bbain2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.