Mexican conglomerate Fomento Economico Mexicano SAB has passed billionaire Carlos Slim’s telecommunications giant America Movil SAB to become the most weighted stock on Mexico’s benchmark IPC Index.
The $34 billion company, known as Femsa, now has a 12.9 percent weight on the IPC, compared to America Movil’s 12.8 percent. While the current balance of the benchmark IPC index took effect Sept. 1, Femsa pulled past America Movil in weighting this month after the Monterrey-based company’s shares surged over the period and Slim’s telephone operator slumped. The next re-balancing will take effect Dec. 1.
Femsa, a bottler and convenience store operator, has gained 26 percent this year as of yesterday’s close while consumer spending rebounds. Its market value has more than doubled in the past 5 years as management expanded the company’s Oxxo convenience-store empire to about 13,000 locations.
Slim’s phone operator hasn’t fared as well. America Movil’s shares have slipped 17 percent in the same period it struggles to maintain growth in Mexico, where it faces regulatory sanctions for having more than half of the wireless and fixed-line market. Since 2010, America Movil has lost more than a third of its market value.