Cemex surges on euro zone deal, 3Q results

Cemex surges on euro zone deal, 3Q results
28 October 2011

Shares of Mexico’s Cemex surged 19 per cent on Thursday, prompting exchange authorities to briefly suspend trading in the stock, which was helped by news European leaders had reached a long-awaited deal to boost the region’s bailout fund.

Cemex has operations in several European nations. Its shares in Mexico traded at 5.93 pesos, up 17.89 per cent with less than half an hour before the closing bell.

Its New York-traded stock soared nearly 23 per cent to $4.55.

A report on Wednesday showing better-than-expected EBITDA growth in the third quarter and the company’s reassurances it will meet key debt obligations by year-end also contributed to the gains, traders said.

Cemex shares were hit hard in the July-September period as analysts dumped the company on mounting concerns it may not be able to meet debt covenants in December.
Published under Cement News