Nov 4 (Reuters) - Santander said Mexican companies’ third-quarter results showed that the country was in a good position to weather global concerns and upgraded construction company ICA and stock exchange Bolsa Mexicana de Valores on market-beating results.
On Oct. 27, ICA said its third-quarter profit surged more than 14 times from the same period last year, boosted by the sale of a toll road to the Panamanian government.
“Results in general showed acceleration in the internal sectors of the economy, namely infrastructure and consumption, which offset a moderate slowdown in the export sector,” Santander wrote in a note to clients.
However, the brokerage said that Mexico’s housing sector was a negative surprise, with homebuilders such as Sare , Ara and Urbi reporting results below expectations.
The significant underperformance of the housing sector in Latin America’s second-largest economy “is justified and likely to remain so over the medium term,” Santander wrote, and removed Homex and Alfa from its top picks list. (Reporting by Aditi Sharma in Bangalore; Editing by Gopakumar Warrier)