Mexico's Stocks Post Sharp Gains, Peso Little Changed

 
 By Anthony Harrup 
 

        MEXICO CITY--Mexican stocks posted their sharpest single-day gain in more than three years Thursday, supported by a rise in U.S. equities as investors were encouraged by the U.S. Federal Reserve's comments that it will be patient in raising interest rates.
        The Fed's statement Wednesday, which was seen as more dovish that many had expected, fueled local stock gains for a second consecutive session, and helped the peso to remain steady against the U.S. dollar.
        Deutsche Bank said emerging market investors were likely caught short by the dovish Fed, combined with a rebound in oil prices, and got "much needed relief yesterday following two week's relentless selloff."
        The benchmark IPC index closed up 3.6%, at 42,476 points, on volume of 277.3 million shares worth 9.1 billion pesos ($624 million). It was the biggest one-day percentage gain in the index since August 2011.
        Telecommunications heavyweight America Movil SAB's (AMX, AMX.MX) L shares rose 2.8%, to MXN15.91, and cement company Cemex SAB's (CX, CEMEX.MX) CPO shares rose 4.6%, to MXN15.78. Cemex said its unit Cemex Latam Holdings will invest $35 million over three years to expand its cement capacity at its plant in Costa Rica by 25% to 1.1 million tons a year by 2017.
        "We are confident that infrastructure projects will continue driving demand for building materials over the medium-term," Cemex said.
        Retailer Wal-Mart de Mexico SAB's (WMMVY, WALMEX.MX) V shares closed up 2.8%, at MXN30.75. Walmex said after the close that it has agreed to sell its banking business, Banco Walmart, to Grupo Financiero Inbursa SAB (GFINBUR.MX), the banking business of billionaire Carlos Slim. Walmex said the deal includes a commercial alliance to strengthen the financial services it offers its customers.
        Pepsi bottler Organizacion Cultiba SAB's (CULTIBA.MX) B shares jumped 5.8%, to MXN18.25, despite a downgrade to neutral from outperform by Credit Suisse, which sees the company taking longer than expected to reach its profit margin targets.
        The peso closed little changed against the dollar, quoted in Mexico City at MXN14.5735, according to Infosel, compared with MXN14.5810 at Wednesday's close.
        Write to Anthony Harrup at anthony.harrup@wsj.com
        (END) Dow Jones Newswires

        December 18, 2014 17:00 ET (22:00 GMT)

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