Bolsa Mexicana Drops Most in 17 Months Before Quarterly Earnings

Bolsa Mexicana de Valores SA, the operator of Mexico’s stock exchange, fell the most in 17 months as the company was set to report quarterly earnings that some analysts speculated were hurt by a slowdown in trading.

The shares plunged 4.7 percent to 28.85 pesos at 2:13 p.m. in Mexico City. A close at that level would be the steepest one-day drop since May 2012. Trading volume was 2.7 times the daily average of the past three months. It sank the most among the 35 stocks in the benchmark IPC index, which fell 1.4 percent, the worst performance among 94 stock gauges tracked by Bloomberg.

Bolsa Mexicana will probably report adjusted earnings per share that rose 4.3 percent from a year ago when it releases its third-quarter report after the close of trading, according to the median estimate of seven analysts surveyed by Bloomberg. Sales are forecast to reach 561.7 million pesos ($43.2 million), the data show.

Itau BBA analysts led by Alexandre Spada recommended that investors not buy the stock before the earnings report, in a research note dated yesterday. The company is expected to post “moderate figures, hurt by an overall weaker volume dynamic than the year-to-date average,” they wrote.

“We don’t expect a strong earnings season in Mexico,” Luis Rodriguez, the director of research at Casa de Bolsa Finamex SAB in Guadalajara, Mexico, said by phone. Bolsa’s earnings “are going to be weaker than average.”

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