MEXICO CITY Feb 25 Mexico's IPC stock index on
Monday reached its lowest point this year, as ongoing fallout
from weaker-than-expected results from blue-chip
telecommunications group America Movil dented the index.
The IPC index closed down 0.86 percent on the day, or
43,497.20 points, its lowest since late December. America Movil
shares were off 2.29 percent at 13.63 pesos.
America Movil recently announced disappointing results,
heaping pressure on the company owned by Mexican billionaire
Carlos Slim and shining a light on some of its less profitable
investments, such as its stake in Dutch telecoms company KPN
America Movil's shares have lost 14 percent since it
reported results on Feb. 12.
"America Movil, with the influence it has, is pulling the
IPC down," said Gerardo Copca, head of analysis at MetAnalisis
in Mexico City. "Nobody liked their report or their involvement
with KPN. There is also a lot of doubt surrounding future
regulation of Mexico's telecommunications sector."
Separately, Mexican homebuilders on Monday rebounded from
the fallout of last week's downgrade warning by Fitch Ratings.
The ratings agency put Geo, Urbi and
Homex on a negative watch, citing cash flow problems,
lack of government support for the sector and a decline in
Urbi shares closed up nearly 8 percent, while Geo shares
were up nearly 1.5 percent. Homex shares closed up 9.16 percent.