Cemex SAB (CEMEXCPO), the largest cement maker in the Americas, rose to the highest price in more than four years, bolstered by the U.S. housing recovery and an increase in Mexico’s public-sector infrastructure spending.
The shares, advancing for a third consecutive day, climbed 0.8 percent to 16.02 pesos at 9:42 a.m. in Mexico City, after reaching 16.19 pesos for the highest intraday level since September 2009. Cemex jumped 26 percent last year.
The Monterrey, Mexico-based cement maker is poised to benefit from construction gains this year in the U.S. and Mexico, its two largest markets, brokerage Corporativo GBM SAB (GBMO) said in a note yesterday. Home prices in 20 U.S. cities rose in October by the most in more than seven years, while the Mexican government’s spending on communications and transportation projects is set to increase by almost 40 percent.
“A stronger U.S. economy should support the continued recovery of the construction industry in the U.S. and aid Cemex, driven by its U.S. operations’ high operating leverage,” Mexico City-based GBM said. “Moreover, we still remain optimistic on the name, based on a recovery of the industry in Mexico.”
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