July 26 (Bloomberg) -- Chemical distributor Grupo Pochteca SAB and paper maker Bio Pappel SAB are among the 20 companies taking part in a Mexican stock exchange pilot program to broaden analyst coverage and boost trading on the bourse.
The program creates a panel of industry group representatives who select equity analysts to research and write about companies without coverage, said Francisco Valle, head of promotion and issuers at the exchange. The analyst reports will be made public through the bourse’s website, he said yesterday in a telephone interview from Mexico City.
Other companies picking up coverage under the program include real-estate developer Dine SAB, broadcaster Grupo Radio Centro SAB and pharmacy operator Farmacias Benavides SAB, according to Valle. Analysts received their first assignments yesterday and the first reports will be published within 90 days, he said.
“We’re going to help create a parallel professional analysis industry in Mexico,” Valle said. “We’re also going to have better pricing and therefore greater trading.”
Similar programs have produced successful results in markets including Australia and Malaysia, he said.
The research groups participating as analysts include Prognosis Economia Finanzas e Inversiones SC, 414 Capital Inc. Bursametrica SA and the local unit of Morningstar Inc.
Companies that participate in the program will pay $18,250 annually, Valle said. The exchange will partially subsidize the fee for those that have a float of at least 30 percent, have at least 300 investors, maintain a website and have an investor relations department, he said.
Shares of Bolsa Mexicana de Valores SAB, the Mexican exchange operator, rose 1.3 percent to 24.91 pesos today in Mexico City trading.