Mexico's leading stock index drops homebuilders
MEXICO CITY Aug 12 (Reuters) - The Mexican stock exchange on Monday dropped homebuilders Geo, Urbi and Homex from its benchmark IPC index.
Trading in shares of Urbi and Geo has been suspended since late last month, after the companies failed to report their second quarter earnings on time.
The three homebuilding companies are trying to restructure their debt after taking on loans to buy large tracts of suburban land where Mexicans no longer want to live.
The stock exchange is also dropping from the benchmark index television broadcaster TV Azteca, controlled by Mexican billionaire Ricardo Salinas, and mining company Frisco , run by Mexican tycoon Carlos Slim.
From Sept. 2, a mix of local retailers, energy and banking companies will take their place.
Slim's restaurant and retail chain Sanborns, which raised just shy of $1 billion in a public listing in February, will join on the index retailer Comerci, banking group Banregio Grupo Financiero, energy company IEnova, the local subsidiary of U.S.-based Sempra Energy and infrastructure company Pinfra .
The exchange recalculates the IPC's constituents based primarily on a stock's liquidity.
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