America Movil Rallies in Mexico City, Snapping DeclineDanielle Verbrigghe
America Movil SAB, the carrier with 70 percent of Mexico’s mobile subscribers, rallied the most in two months on speculation the telecommunications bill won’t be as hard on the company as some traders had expected.
The stock jumped 2.5 percent to 12.12 pesos at the close of Mexico City trading, the biggest increase since Jan. 4. Trading volume was more than three times the three month average. The country’s benchmark IPC index rose 0.2 percent.
Shares fell 13 percent in the previous three days on speculation the telecommunications bill designed to spur competition in the industry would reduce Mexico City-based America Movil’s market share.
The stock’s plunge over the past three days was “a little bit over the top,” Andres Medina-Mora, an analyst at Corporativo GBM SAB in Sao Paulo, said in a telephone interview. He rates America Movil the equivalent of buy.