Cemex rises to highest in 3 weeks on US data

Cemex rises to highest in 3 weeks on US data
Published: 03 December 2010

Cemex climbed to the highest level in three weeks after a report on home sales signaled a better economic outlook for the US, the company’s second-biggest source of revenue.

Cemex gained 2.7 per cent to 11.79 pesos in Mexico City trading at 4:00 p.m. New York time, the highest since Nov. 8.

Pending sales of existing U.S. houses unexpectedly jumped by a record 10 per cent in October. The increase in the number of Americans signing contracts to buy previously owned homes followed a 1.8 per cent drop in September, the National Association of Realtors said today in Washington.

“Today’s optimism has much to do with economic data that has come out in the U.S.,” said Carlos Hermosillo, an analyst with Grupo Financiero Banorte, in a telephone interview from Mexico City.

“The most important for the specific case of Cemex are home sales.”