February 25, 2013 / 9:45 PM / in 5 years

UPDATE 2-Mexico shares slump to 2013 low on America Movil woes

MEXICO CITY, Feb 25 (Reuters) - 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 investor confidence.

Urbi shares closed up nearly 8 percent, while Geo shares were up nearly 1.5 percent. Homex shares closed up 9.16 percent.

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