Mexico’s benchmark stock index rose the most in 20 months on speculation that a proposal next week by the country’s ruling party will spur changes in the state-controlled energy industry and accelerate economic growth.
The IPC index advanced 2.5 percent to 41,863.76 today in Mexico City, the biggest gain since November 2011. All 33 of the index’s actively-traded stocks rose. Fomento Economico Mexicano SAB, a soda distributor and convenience-store operator, rose 3.6 percent, the most in a month. Alpek SAB, the petrochemicals unit of Alfa, rose a record 7.2 percent.
Mexican President Enrique Pena Nieto told Radio Formula today that his party’s energy reform plan will be presented next week. If approved, the changes are likely to increase the potential for gross domestic product growth in Latin America’s second-biggest economy, said Jorge Lagunas, who oversees about $200 million in stocks at Grupo Financiero Interacciones SA.
“This should be a deep enough reform to add those famous two or three percentage points to GDP growth,” Lagunas said. Mexico’s economy is forecast to grow by 4 percent next year, compared with 2.8 percent this year, according to the median estimates of analysts surveyed by Bloomberg.
Desarrolladora Homex SAB, Mexico’s biggest homebuilder by 2012 revenue, gained 24 percent, bringing its two-day rally to 63 percent after a government minister said yesterday that the country’s largest developers were “very important.”