Wal-Mart de Mexico SAB, the nation’s biggest retailer, rallied to a five-month high on plans to pay higher dividends after earnings beat analysts’ estimates.
The shares jumped 5.2 per cent to 35.07 pesos at 11:20 am in Mexico City, the most on the IPC stock index, which dropped 0.1 per cent. Wal-Mex, which has jumped 11 per cent this year, was set for its highest level since 15 September.
Net income surged 42 per cent in the fourth quarter to 10.4 billion pesos ($695 million), the company said. That beat the average estimate of five analysts tracked by Bloomberg of 7.7 billion pesos. Wal-Mex will propose an extraordinary dividend of 1.28 pesos per share for 2015 and an increase in the quarterly payout to 0.14 peso, Chief Executive Officer Enrique Ostale said on a conference call with analysts.
“The overall sensation that the worst might be over could act as a positive combo for Wal-Mex’s shares,” Luis Willard, an analyst at Corporativo GBM SAB in Mexico City, wrote in a research note to clients.
Bloomberg News, edited by ESM
