Penoles Advances Most in Week as Metals Rise: Mexico City MoverNewley Purnell
Industrias Penoles SAB, Mexico’s second-biggest mining company by market value, rose the most in a week as precious metals prices gained.
The shares advanced 6.3 percent to 425.55 pesos at the close of trading in Mexico City. It was the best performance on the country’s benchmark IPC index of 35 stocks, which gained 1.2 percent.
Silver and gold prices rallied after Federal Reserve Chairman Ben S. Bernanke said yesterday that the U.S. needs “highly accommodative monetary policy for the foreseeable future.” Silver futures for September delivery advanced as much as 5.7 percent. Gold futures for delivery in August gained as much as 4 percent.
“Basically it’s the rising price of silver” driving Penoles’s gain today, Carlos Hermosillo, an equity analyst with Grupo Financiero Banorte SAB, said in a telephone interview from Mexico City. “Being the principal product of the company, there’s a direct correlation between the stock price and the market price.”
Shares in Groupo Mexico SAB, the country’s largest mining company, rose 4 percent today, the most since July 27.