Bolsa Mexicana Tumbles on Credit Suisse Cut: Mexico City MoverDanielle Verbrigghe
Bolsa Mexicana de Valores SAB, the Mexican stock and derivatives exchange, plunged the most in six months after Credit Suisse Group AG became the fifth brokerage firm this year to cut its rating on the stock.
The stock fell 3.7 percent to 31.59 pesos at the close of Mexico City trading in the biggest drop since July 18. It was the steepest decline on the IPC index, which fell 0.3 percent. The stock is down more than 8 percent from a Jan. 11 record of 34.54 pesos.
Derivatives volumes have been “soft” and the timing of a rebound is unclear, according to a report dated yesterday from Credit Suisse, which cut its rating to the equivalent of hold from buy. Banco Santander SA, Itau Unibanco Holding SA, HSBC Holdings Plc and JPMorgan Chase & Co. also have cut their recommendations on the stock in 2013.
Bolsa Mexicana’s “rally has lost some steam,” Credit Suisse analysts led by Victor Schabbel said in the report. “Still-modest performance on the derivatives side should offset the compelling figures to be seen in the cash equities segment.”
A rebound for Mexico City-based Bolsa Mexicana’s derivatives revenue will rely on the start of new swap contracts and the move of over-the-counter derivatives to an exchange environment, the analysts wrote.