Mexico’s IPC Falls in Worst Losing Streak Since ’09 on EconomyJonathan Levin
Mexico’s IPC equity benchmark dropped for a seventh day, the worst stretch of losses since 2009, as concern mounted that slowing economic growth will crimp corporate earnings.
Soda bottlers Coca-Cola Femsa SAB and Arca Continental SAB slid 1.3 percent and 2.7 percent while Wal-Mart de Mexico SAB, Latin America’s biggest retailer, retreated 1.8 percent. Precious-metals miner Minera Frisco SAB fell 6.4 percent.
The index of 35 stocks slipped 0.2 percent to 39,162.49 at the close in Mexico City, posting its longest losing streak since a nine-day drop in January 2009. The plunge began after the statistics bureau reported on Aug. 20 that the economy expanded less than analysts forecast in the second quarter and the government cut its 2013 growth forecast to 1.8 percent from a previous projection of 3.1 percent.
“The weak performance of the economy has had an impact,” Gerardo Copca, an analyst at Metanalisis SA, said by phone from Mexico City. “You have to adjust your expectations for lower sales and profits.”
Mexico’s IPC is down 6.4 percent in seven days, compared with a 1.3 percent drop during the period for the MSCI Emerging Markets Index.