June 28 (Bloomberg) -- Mexico’s IPC index rose the most among major stock benchmarks in the Americas and Europe today, capping its biggest weekly advance since 2009 after plunging on June 20 to a one-year low.
The IPC rose 2.5 percent to 40,623.30 at the close in Mexico City. The index gained 6.8 percent on the week, the most since July 2009. Steelmaker Industrias CH SAB was the biggest gainer today, while homebuilders Desarrolladora Homex SAB, Urbi Desarrollos Urbanos SAB, and Corp. Geo SAB were the week’s best performers.
Global stocks had plunged earlier in June amid speculation that the U.S. Federal Reserve is moving to taper monetary stimulus that has pushed investors to put money into higher-yielding emerging markets. Last week the index fell to 14.9 times analysts’ earnings estimates, the cheapest since June 2012.
“Valuations reached a very low level,” Luis Rodriguez, the director of research at Casa de Bolsa Finamex SAB in Guadalajara, Mexico, said by phone. “All emerging markets had a good week, and there are some good fundamentals in the Mexican economy that have been recognized by the market, so the bounce was larger,”
The IPC is still down 7.1 percent on the year.
Industrias CH gained 7.9 percent to 85.55 pesos today. Homex climbed 5.4 percent to 8.16 pesos, extending this week’s gains to 16 percent. Urbi gained 7.2 percent to 2.37 pesos today, advancing 16 percent in the past five days. Corp. Geo gained 1.5 percent today to 5.55 pesos, climbing 14 percent for the week.
The MSCI Emerging Markets Index rose 2.3 percent at the close in New York, extending its weekly rally to 4.4 percent.
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