Urbi Rebounds After Shares Fall to Record Low: Mexico City Mover
Urbi Desarrollos Urbanos SAB jumped the most in a month, leading gains among Mexican homebuilders as record-low prices lure some investors.
Urbi, the nation’s third-biggest homebuilder by revenue, jumped 9.3 percent to 2.48 pesos today, the biggest advance since March 6, as the Mexico Habita Index (HABITA) of six companies in the sector advanced 5.1 percent. Corp. Geo SAB, Mexico’s second- biggest builder by revenue, climbed 7.2 percent, while Desarrolladora Homex SAB, the biggest, advanced 3.3 percent.
Investors with short investment horizons have been buying shares to take advantage of historically low valuations, Carlos Hermosillo, an analyst with Grupo Financiero Banorte SAB, said in a telephone interview from Mexico City. Builders tumbled this year as changing government subsidy programs forced builders to spend cash to adapt. The Habita index fell to a record low 0.3 times book value on April 16.
Urbi shares have fallen 69 percent this year, while Geo and Homex have retreated 66 percent and 55 percent, respectively.
Mexico’s benchmark IPC index fell 0.4 percent today.
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