It appears the United States and Mexico may have reached a deal on a renegotiation of the North American Free Trade Agreement (NAFTA). The agreement is said to center on rules governing the automobile industry, resolving one of the most contentious issues with the current agreement. But it leaves aside other sources of friction for the time being.
The preliminary new agreement also excludes Canada, another party to NAFTA, which has been absent from recent talks held in Washington. The revised agreement will need congressional approval before it can go into effect.
The reaction from shareholders of Mexico-based stocks traded in New York is positive, though not strongly so.
America Movil SAB de C.V. (NYSE: AMX) shares traded more than 2% higher at $17.42. The telecommunications giant has traded between $14.85 and $19.91 a share in the past 52-weeks. It also has an analysts’ mean price target of $18.86.
Cemex SAB de C.V. (NYSE: CX) was up more than 3% Monday morning to $7.24. The building materials giant’s shares have had a $5.72 to $9.54 trading range in the past 52 weeks, and the consensus price target was last seen at $9.37.
Fomento Económico Mexicano SAB de C.V. (NYSE: FMX) was trading at $99.11, or up about 2%, on last look. Shares of this Coca-Cola bottler have a consensus price target up at $109.00, while the 52-week trading range is $80.86 and $101.18.
Grupo Televisa SAB (NYSE: TV) was up a little more than 2% Monday morning to $18.67. The shares of this media company have a 52-week range $14.20 to $26.35 and a consensus price target of $20.92.
Also note that the iShares MSCI Mexico Capped ETF (NYSEARCA: EWW) had risen less than 3% to $52.60 Monday morning as well.