Feb. 8 (Bloomberg) -- Desarrolladora Homex SAB and Sare Holding SAB led Mexican homebuilders to their biggest weekly decline since August as analysts cut fourth-quarter earnings estimates on signs that sales slowed late last year.
Homex, the largest Mexican homebuilder, fell 1.7 percent to 28.23 pesos at the close of trading in Mexico City. It was the fourth straight drop, leaving the stock down 8.4 percent on the week. Sare plunged 9.2 percent, while Urbi Desarrollos Urbanos SAB fell 6.7 percent and Corp. Geo SAB lost 5 percent.
Mortgages on new homes from the state-controlled lender Infonavit declined 33 percent in the fourth quarter from a year earlier, according to Javier Gayol, an analyst with Corporativo GBM SAB. “Those numbers are not promising for the industry,” he said.
The Mexico Habita Index, which tracks six homebuilders in the country, fell 5.9 percent this week.
Analysts have been cutting their estimates for homebuilder’s fourth-quarter earnings, said Carlos Hermosillo of Grupo Financiero Banorte SAB in Mexico City. He has a buy rating on Culiacan-based Homex.
“Investors are looking for signs of improvement in companies’ results and are learning the results will not be that good,” Hermosillo said.
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