Geo Plunges Most on Mexico’s IPC Index on Earnings ConcernDanielle Verbrigghe
Corp. Geo SAB, Mexico’s third-biggest publicly-traded homebuilder by market value, plunged to the lowest in four years on speculation that fourth-quarter results will be weaker than anticipated.
The stock tumbled 5 percent to 11.53 pesos at the close of Mexico City trading, the lowest price since December 2008. The stock led declines on the benchmark IPC index, which fell 0.4 percent, and the Habita index of Mexican homebuilders, which declined 3 percent.
“The market is really, really trying to stay far away from the housing sector, at least until we can see some numbers,” Javier Gayol, an analyst with Mexico City-based brokerage Corporativo GBM SAB, said in a telephone interview. “Until then we can expect the companies to continue to fall.”
Mexico City-based Geo and other homebuilders are scheduled to report fourth-quarter earnings next week. A decline in mortgages for new homes from the state-controlled lender Infonavit suggests the results will be weak, Gayol said.