July 29 (Bloomberg) -- Desarrolladora Homex SAB, Mexico’s biggest homebuilder by 2012 revenue, extended its two-day selloff to a record after posting a record loss last week.
The shares fell 32 percent to 3.17 pesos today in Mexico City trading, extending its two-day rout to 52 percent after the company said July 25 that it had a 10.2 billion peso ($800 million) loss in the second quarter. Urbi Desarrollos Urbanos SAB and Corp. Geo SAB, Homex’s main competitors, have been suspended from stock trading after they failed to deliver second-quarter results before the exchange’s July 26 deadline.
Homex, Geo and Urbi are preparing to restructure debt after a change in federal housing policy shifted subsidies to encourage city development over commuter towns, forcing builders to move into new product lines and rendering some of their current land holdings useless. Homex’s loss exceeded the 29 million peso loss analysts projected, as the Culiacan, Mexico-based company wrote down assets.
The company said today in a regulatory filing that the stock selloff reflects “market conditions” and didn’t have additional information to disclose that might explain the “unusual movements” in its shares.
Homex’s bonds due in 2020 fell 1.56 cents to 27.20 cents on the dollar, according to data compiled by Bloomberg.
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