Banamex upgrades Peñoles to hold

Mexican financial group Banamex-Accival has upgraded its recommendation for mining-metals company Industrias Peñoles (BMV: PENOLES) from sell to hold, Milenio reported. Banamex-Accival also predicted that Peñoles' share price would reach 78 pesos on Mexico City's stock exchange (BMV) in the next 12 months, a 36% increase on its current price of 57 pesos. Banamex-Accival analysis manager Rafael Urquía said that Peñoles, the world's largest producer of refined silver, will benefit from the continued weakness of the US dollar, which will help increase gold and silver prices. Shares in Peñoles have been among the most heavily traded on the BMV due to the market's outlook and its corporate strength, Milenio reported. In October, the company reported nearly 640mn pesos (US$56mn) in earnings for the first nine months of 2004, reversing a 182mn-peso loss in the same period last year. Peñoles is also the world's largest producer of sodium sulfate and has divisions in mining (silver, gold, copper, zinc, tungsten, bismuth and lead), exploration, engineering and construction, metals and chemicals.