Cemex Hits Highest Since 2008 as U.S. to Mexico Gains SeenBrendan Case
Cemex SAB, the largest cement maker in the Americas, rose to the highest price in more than five years, bolstered by the U.S. housing recovery and an increase in Mexico’s public-sector infrastructure spending.
The shares, advancing for a third consecutive day, climbed 2.5 percent to 16.29 pesos at the close in Mexico City, the highest since Sept. 25, 2008. Cemex jumped 26 percent last year.
The Monterrey, Mexico-based cement maker is poised to benefit from construction gains this year in the U.S. and Mexico, its two largest markets, brokerage Corporativo GBM SAB said in a note yesterday. Home prices in 20 U.S. cities rose in October by the most in more than seven years, while the Mexican government’s spending on communications and transportation projects is set to increase by almost 40 percent this year.
“A stronger U.S. economy should support the continued recovery of the construction industry in the U.S. and aid Cemex, driven by its U.S. operations’ high operating leverage,” Mexico City-based GBM said. “Moreover, we still remain optimistic on the name, based on a recovery of the industry in Mexico.”
Cemex’s 6.2 percent gain this year tops the benchmark IPC index of 35 Mexican stocks, which has declined 0.6 percent. The company’s American Depositary Receipts advanced 3.6 percent in New York today to $12.60, the highest since Oct. 1, 2008.