MEXICAN STOCK EXCHANGECLOSES 2014 WITH PROFITS (EXCÉLSIOR 12)

The year just ended was moderately positive for the Mexican Stock Exchange, with the Prices and Quotations Index showing a year-on-year increase of 0.98%, reaching 43,145.66 units on the final day of 2014, compared to 24,727.09 in 2013. Among the companies listed on the IPC, there were winners and losers.Gruma was the company whose shares recorded the highest yield, surging by 60.85% from MXN 97.80 to MXN 157.32 over the year. This spike was largely due to improvements made in terms of the company’s profitability.

HANK GONZÁLEZ TAKES UP THE PRESIDENCY (EL ECONOMISTA pp-8)

On January 1st, Carlos Hank González took up the reins of Grupo Financiero Banorte, regarded as Mexico’s third largest bank in terms of asset capitalization. Hank González is the grandson of Roberto González Barrera, founder of Gruma and Banorte, and also of legendary Mexican state politician, Professor Carlos Hank. At 43 years of age, the former CEO of Banco Interacciones Hank González hands over the chairmanship of Banorte’s Board of Directors to Guillermo Ortiz.....

IRASEMA ANDRÉS DAGNINI/CLEAR ACCOUNTS (LA RAZÓN 19)

In the final day’s trading of the year, the Prices and Quotations Index rose by 0.30% to 43,145.66 units, meaning a nominal increase for the financial year of 0.98% and a heavy loss of 10.64% in Dollar terms. However, the Mid-Cap Index was up 8.23% and the FIBRAS (BMVFibras) index increased by 15.98% in Mexican Peso terms.  Shares in GRUMA and IENOVA have performed exceptionally due to the firms’ demand, favorable financial results, and growth expectations, with increases of 59.3% and 41.5% respectively... 

GRUMA, BEST OF 2014 (EL ECONOMISTA pp-1-8-9)

Corn flour and tortilla producer Gruma leads the list of winners on the Mexican Stock Exchange’s IPC for the second consecutive year. In 2014, the company recorded a yield of 59.26%, with its share price closing at MXN 157.32 per share. One year previously, the issuer posted a yield of 152.18%, with a price of MXN 98.78 per share. At the close of 2014, its capitalization value was MXN 68.08 billion, for an increase of MXN 25.333 billion in 2014... Verónica Uribe, analyst at Monex, explained in an interview this year that the issuer will move forward with this same dynamism due to the operational efficiencies and investments that it has planned outside of Mexico...

MONTERREY INDEX WEAKENS DURING 2014 (EL ECONOMISTA 10)

During 2014, the Regio Index (comprised of 20 companies from the city of Monterrey) grew by 0.22% compared to the 0.98% figure recorded by the key inicator of the Mexican Stock Exchange, the IPC. In the year just ended, the companies on the Regio Index that reported the highest yields were GRUMA, OMA and Autlan with growth reported at 59.3%, 55.0% and 54.7% respectively... 

EL ECONOMISTA PUBLISHES A LIST OF THE HIGHEST YIELDING COMPANIES ON THE MEXICAN STOCK EXCHANGE  (Ciro Gómez Leyva POR LA MAÑANA )

Ciro Gómez Leyva: Good work as always on the front cover of “El Economista”. It carries the headline: “Mexican upturn in outflow of capital. US$11.5 billion flowed out of eight emerging national economies. However, it also features a graphic of the companies that recorded the highest yields on the Mexican Stock Exchange last year, with a lIst headed by the highest yielding company on the Mexican stock market, Gruma, at 59%. This means that if you have bought shares in Maseca... you have made a profit of almost 60%. Shares in Gruma are now worth MXN 157 each; each share in Televisa: MXN 100, each share in Elektra: MXN 574….

IN NUMBERS... (EL ECONOMISTA 15) Gruma.

The capitalization value of Gruma, the highest yielding firm on the IPC of the Mexican Stack Exchange, is now MXN 60.08 billion.

GBM UNVIELS ITS FAVORITES LIST. (EL ECONOMISTA 2-5)

Cementos Mexicanos (Cemex), Grupo México, corn flour producer Gruma, chemical and petrochemical sector firm Mexichem and Promotora y Operadora de Infraestructura (Pinfra), were the companies chosen by GBMhomebroker as its 2015 Top Picks. Iván Barona, Director of Analysis of GBMhomebroker, the digital arm of Grupo Bursátil Mexicano, explained that every year they select the best investment options based on company characteristics and, this year, these were the five companies selected… Gruma, he said, is on the path to reaping the benefits of its operational restructuring; therefore, they have estimated a target price of MXN 192.90 per share...

THE 100 MOST GLOBAL COMPANIES(EXPANSIÓN 88)

In its countdown of the most global companies carried out by Expansión magazine, Gruma is placed 10th, with a 2015 globality index of 15.9, and foreign revenue in 2013 standing at MXN 32.925, as well as 60.9% of sales made abroad during 2013, as it operates in 17 different countries.

HIGH FIRST-SEMESTER VOLATILITY FORECAST (EL ECONOMISTA 2-5)

By the close of this year, the IPC of the Mexican Stock Exchange will reach 45,500 points, Actinver has forecast in its study. However, the stock market will experience high levels of volatility during the first semester. Therefore, its short-term outlook for Mexico is mixed, as uncertainty continues to surround petrol prices and their importance on the national economy... Actinver also holds a positive outlook for Gruma, estimating its target share price by the end of this year at MXN 175, given that its international sales (particularly in the United States) will be boosted by the depreciation of the Mexican peso. It is noteworthy that the tortilla producer has been the highest yielding firm in the Prices and Quotations Index of the Mexican Stock Exchange during the past two years.

ALBERTO BARRANCO / ENTERPRISE. (EL UNIVERSAL 4)

Coveted shares. According to Grupo Bursátil Mexicano, the most sought after shares for investors during the first third of the year will be those of Cementos Mexicanos, Grupo México,Maseca, Mexichem and Pinfra. The reasons behind this scramble are their strong cash generation, their sound finances, their competitive advantages in the climates in which they are active, their attractive assessments, and their determination to creating value for their shareholders.

TENDENCIESAND TRENDS (EL ECONOMISTA 7) GRUMA.

Financial group Goldman Sachs has updated its investment recommendation for the corn flour producer’s shares on the New York Stock Exchange (American Depositary Receipt) from Neutral to Buy.

THESTARS OF THE YEAR (EL ECONOMISTA pp-1-8-9)

Financial groups’ analysis areas have profiled the issuers with the best growth potential for 2015. Their agreed list of favorites included: Cemex, Alsea, Pinfra y Rassini. According to the Interacciones Financial Group, the companies whose favorable outlooks will ensure they feature in the top 10 in 2015 are: Cemex, FEMSA, GFNorte, Gruma, Genomma Lab, Pinfra and Rassini... 

COMPANIESWILL MAKE SIGNIFICANT PROGRESS IN INCOME AND EBITDA(EL ECONOMISTA 9)

From Companies that recorded 17% falls in their share prices, to companies that increased in value by more than 400% last year, the analysts’ favorites for 2015 have become clear... A few weeks ago, GBM Grupo Financiero Bursátil announced its list of favorites, featuring Cemex, Grupo México, Gruma, Mexichem and Pinfra.

TURKISHAUTOPARTS INVESTMENT COMES A STEP NEARER WITH TLC. (EL ECONOMISTA p-24)

Rather than the mere exchange of goods and services, the Free Trade Agreement expected to be signed between Mexico and Turkey in 2015 will boost the attraction of bilateral investment, particularly in the auto sector, predicted Martha Bárcena, Mexican ambassador in Turkey... Chief among the Mexican companies that have invested in Turkey is Gruma, which has outlaid more than EUR 50 million in the city of SamSum, which produces cornmeal, an essential ingredient for a dish called polenta.

THEDISPUTE OVER CENTRAL AMERICA (FORBES MÉXICO 5-60-70)

For this region of 45.4 million people, Mexico is a giant that has historically exercised great influence with its bombardment of Ranchera music, Charro cowboy films and iconic companies such as Bimbo, Gruma and construction group ICA. As a booming emerging country, Colombia has become a true sensation due to its success in resolving its public security issues, its popular and talented singers and the breakthrough of all kinds of companies across the Central American isthmus. Mexico and Colombia have their eyes set firmly on Central America, a geographic area neighbored by both, which is becoming more attractive for commerce and investment.

STOCKMARKET RECEIVES MEXICO (EL ECONOMISTA pp-1-10-11)

Mexico did not arrive late to the Latin American Integrated Market (Mila), according to the Presidents of its member countries’ stock markets (Chile, Colombia and Peru), who stated that - in addition to its size - the Mexican Stock Exchange will provide a larger number of issuers, greater diversification of products, and experience, which will help attract more foreign investors. With the addition of Mexico, the capitalization value of the Mila will reach US$939 billion, making it the largest stock market in Latin America with a total of 790 issuers... The issuers that experienced the largest rise in share price during 2014 were: CEM, Compañía Minera Atacocha, Peruana de Energía, Farmacias Ahumada and Sulliden Gold Corporation Ltd. Francis Stenning, CEO of the Stock Exchange in Lima, mentioned that some of the companies in the Mexican Stock Market are already familiar to many Peruvians, such is the case of Bimbo, Gruma and others. However, this South American country’s population has never before had access to be able to invest in them. 

SANTANDER’STEN TOP ISSUERS FOR 2015. (EL FINANCIERO 20)

Santander Casa de Bolsa estimates that the companies included in the IPC Index of the Mexican Stock Market will post 7% growth in their cash flow in 2015, and 10% growth in net income. A report by the stockbroker reveals that its list of ten top picks of issuers for this year includes: Mexichem, Liverpool, Alsea, Pinfra, Femsa, OMA, IEnova, Fibra Uno, Gruma, and Walmart Mexico and Central America. 

BANORTE, READY FOR SENSIBLE GROWTH: HANK (EL FINANCIERO 8)

Grupo Financiero Banorte will experience growth that is “sensible and with upward returns on capital”, said Carlos Hank, President of the Financial Group’s Board of Directors. Hank González presided over his first Shareholder’s General Meeting of the institution, held in Monterrey, having replaced Guillermo Ortiz Martínez to become President of the Board on January 1 of this year... In early 2003, he became Deputy CEO of Grupo Financiero Banorte, before returning to Grupo Financiero Interacciones later that year as CEO. He said of this era that he remembers the example of his grandfather on his mother’s side, Roberto González Barrera, founder of Gruma and Banorte, who he worked with and got to know not only as a grandson and friend, but also as a businessman...

GOLDMAN SACHS IMPROVES GRUMA’S SHARE RATING (ENFOQUE FINANCIERO ) 

Alicia Salgado: I finally want to add that Gruma has had excellent results, and Goldman Sachs has today improved its rating forGrumashares. The agency strongly recommends purchasing shares in the company led by Juan González Moreno.

TENDENCIESAND TRENDS (EL ECONOMISTA 7) GRUMA.

Goldman Sachs has improved its recommendation for investment in the corn producer by changing its recommendation from Neutral to Buy following a better international growth outlook for the company.

SHARESSHOOT UP (REFORMA 5) (EL NORTE 0)

In just one week, Grupo Maseca has recorded an increase of 6.96% in its share price, up from the MXN 154.96 it recorded on January 16 of this year to MXN 165.75 at the close of trading on the past Friday.

INVESTMENTS (MILENIO DIARIO 24) 

Juan González, in the Group of Ten. The Group of Ten (G10), as the influential group of businessmen is known inside and outside of Monterrey, founded by Eugenio Garza Lagüera and Adrián Sada Treviño, has extended an invitation to a new member. We are talking about Juan Antonio González Moreno, CEO and President of Gruma. The heir to Roberto González Barrera is certainly not lacking in honors or significance. We need only recall his contribution to the internationalization and capitalization of Gruma. In the past five years, for instance, the firm’s share price has multiplied approximately eight times over.

SEEWHICH LISTED COMPANIES ARE ATTRACTIVE THIS YEAR. (EL ECONOMISTA 14-15)

The promising issuers from this year’s trading. Since 2008, GBM’s Analysis area has been selecting its top picks of issuers to provide investors with intriguing options. If you are planning on starting to invest in the Stock Market this year, or if you are thinking of tweaking your portfolio, take into account one of these five possibilities. Gruma. Following its restructuring, analysts believe that this firm has produced interesting results. Indeed, its restructuring has led to much improved profitability.Gruma’s operations are estimated to achieve operating profit margins approaching 15% this year. This increased profitability, in addition to its positive outlook, suggests it will be one of the year’s best cash-generating companies. Current share price: MXN 166.30. End-of-year target price: MXN 192.90. Potential yield: 15.99%. 

DAVID PÁRAMO/RENOWNED PERSONALITIES. (EXCÉLSIOR 4)

It is only logical to look upon China as one of the most interesting markets for the expansion of the Mexican economy, and particularly of its companies; however, the facts show a much more complex situation for Mexico. Some companies have experienced relative success selling products in said market, as is the case of Cementos Mexicanos and Grupo Industrial Maseca, as well as Corona when it was still in Mexican hands; however, the same has not been true in the matter of attracting investment. The furthest we have come, where little progress was in fact made, was the co-investment between Grupo Salinas and FAW, which did not materialize.

IRASEMA ANDRÉS DAGNINI/GOODACCOUNTS (LA RAZÓN 24)

The Analysis area of Interacciones Casa de Bolsa indicates that the time to make selective purchases is approaching, and that it can see the potential for growth in the infrastructural and industrial sectors, as well as select shares in the consumption and finance sector, highlighting its top picks as shares in CEMEX, FEMSA, GFNORTE, GRUMA, LABB, PINFRA and RASSINI. 

HIGH-POTENTIALFIRMS LISTED (EXCÉLSIOR 10)

The companies offering investors most attractive opportunities in terms of share performance in 2015 are Cemex, Grupo México, Gruma Corp., Mexichem and Pinfra, said Iván Barona, Director of Analysis at GBMhomebroker, and Olaf Sandoval, Economic Analyst at the same company. They explained that a strong dollar will in some cases be of benefit to Mexican companies with operations in the United States, such as Gruma Corp. and Cemex.