Mexican Stocks Tumble to Three-Month Low as Grupo Mexico SinksDanielle Verbrigghe
Mexico’s benchmark IPC stock index fell to the lowest in three months as the country’s biggest mining company followed copper prices lower.
The index sank 1.3 percent to 42,060.61, the lowest level since Nov. 30. Homebuilders declined for an eighth-straight day, sending an index of builders to a record, while Grupo Mexico SAB’s drop contributed the most to the gauge’s fall.
Grupo Mexico, Mexico’s biggest mining company by market value, fell 3.6 percent to 49.71 pesos, as copper prices declined to the lowest in almost seven months on speculation European debt turmoil will damp growth and erode demand.
“The whole sector has been affected by lower prices,” Rodrigo Garcilazo, an analyst with Corporativo GBM SAB in Mexico City, said in a telephone interview.
Grupo Financiero Banorte SAB fell 3 percent to 95.67 pesos, while Fomento Economico Mexicano SAB fell 2.1 percent to 136.25 pesos.