Mexico Mining Selloff Worsens as Concerns Grow on Law Proposals
- Penoles has fallen 15% in the past 3 days, Grupo Mexico -12%
- Mexican miners will decouple from fundamentals: Morgan Stanley
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Fears of tougher mining regulation in Mexico under incoming President Andres Manuel Lopez Obrador are taking over investor sentiment, with some of the top stocks falling for the third consecutive day.
Industrias Penoles SAB, Grupo Mexico SAB and Fresnillo Plc extended losses after Morgan Stanley downgraded the stocks on concerns that Mexico’s new congress is considering as many as 11 bills or resolutions that could materially impact mining companies operating in the country. On Tuesday, an initiative from Morena party Senator Angelica Garcia called for increasing surveillance of mining activities and giving greater powers to communities and the government.