Mexico’s Cemex shares surge after US removes tariffs

Mexico’s Cemex shares surge after US removes tariffs
Published: 03 April 2009

Shares in Mexico’s Cemex surged on Thursday after the United States removed anti-dumping tariffs on Mexican cement and as investors hoped Cemex, the top cement producer in the United States, would soon refinance its debt.

Cemex jumped 13 per cent to 10.50 pesos, while its U.S.-traded shares gained 17 per cent to US$7.77. The Mexican stock exchange briefly suspended trading after its stock rose more than 15 per cent.

The stock also rose on expectations that Cemex, which faces looming dollar debt payments, would benefit from the central bank’s decision to tap a US$30bn currency swap line with the U.S. Federal Reserve to help local companies.

"The United States removed tariffs on Mexican cement and that is driving Cemex," said a trader in Mexico City. The move ended a 15-year-old trade dispute.

Source: Reuters