E-Malt.com News article: 596

Mexico's number one beer company, Grupo Modelo, surged 4.96% in the stock market early Monday afternoon as investors took advantage of recent steep losses, according to Reuters. "Modelo has been heavily punished, to the extent the stock almost had to rebound," a Mexico City trader said. The company, which produces top U.S. beer import Corona, saw its stock plummet more than 10 percent from Jan. 2 to last Friday.

Bear Stearns on Jan. 30 downgraded Grupo Modelo to peer perform from outperform following a reduction in management's fourth-quarter 2002 guidance because of weak December sales. "It appears that poor macro conditions in Mexico are now affecting the southern and central regions, where Modelo holds dominant market share," Bear Stearns said in its report. Modelo, whose main rival in Mexico is Fomento Economico Mexicano (Femsa), is half-owned by the world's largest beer producer, Anheuser-Busch Cos Inc.


04 February, 2003