Mexico-based airport operators trading on U.S. markets fell sharply Wednesday after a Goldman Sachs analyst downgraded Grupo Aeroportuario del Pacifico SAB de CV, citing the effects of higher oil prices.
Daniela M. Bretthauer predicted in a client note that high oil prices will continue to drive up fuel prices and erode traffic at Mexican airports, and downgraded Grupo Aeroportuario to "Neutral" from "Buy."
American Depositary Receipts of Aeroportuario fell $1.48, or 4.3 percent, to $33 in afternoon trading after reaching a fresh 52-week low of $32.80 earlier in the session.
The analyst also lowered her 2008 estimate of traffic growth at Mexican airports to 9 percent from 15 percent, meaning they will see 37.9 million new passengers, she said.
Goldman analysts have expressed concern recently over the rise in oil prices and its effects. Earlier in May, the bank's Arjun Murti said the world was in the midst of a "super spike" in crude prices, and said oil could reach as high as $200 a barrel in the next two years.
Bretthauer reiterated that prediction, and said the higher prices would continue to weigh down Mexican airlines and airports.
Oil prices wavered on the New York Mercantile Exchange Wednesday. In afternoon trading, light, sweet crude for July delivery gained $1.33 to $130.18 a barrel, recovering from early losses.
ADRs of other Mexican airport operators were lower. Grupo Aeroportuario Centro Norte SA de CV lost 67 cents, or 3.5 percent, to $18.60. Grupo Aeroportuario del Sureste SA de CV gave up 92 cents to $49.48.
The broader ADR market was mixed. The Bank of New York Mexico ADR Index gave up 1.66 points to 412.29, while the broader Bank of New York Latin America ADR Index rose 8.80 points, or 1.8 percent, to 497.30.
Meanwhile, the Bank of New York Composite ADR Index slipped 0.23 points to 181.84.
ADRs are securities designed to allow U.S. investors to trade shares of companies based overseas.
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