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Sector Update: Financial

By: MT Newswires
Posted: 6/20/2013 3:43:00 PM
Referenced Stocks: EBIX;GS;ICA

Financial stocks are keeping pace with the steep downdraft for stocks today with the NYSE Financial Sector Index falling 2.5% and the S&P Financial 100 Index declining 2.1%.

In company news, Goldman Sachs Group ( GS ) is down 4.1% at $157.02 a share and the investment bank today inking a deal for a stake in a Mexican toll-road operator while scrapping another proposed acquisition.

GS today said it will acquire an 18.7% stake in Red de Carreteras de Occidente SAB de CV, the concessionaire for approximately 760 kilometers of Mexican highways, from Empresas ICA SAB de CV ( ICA ) for around $377.5 mln (Ps. 5,073 million).

ICA will continue to operate the highways. The transaction completes an asset recycling process initiated by the Mexican construction firm in 2012.

GS today also cancelled a proposed purchase of Ebix Inc. ( EBIX ) after a U.S. Attorney's office opened an investigation into allegations of intentional misconduct by the insurance software company. EBIX has denied any wrongdoing.

In other sector news,

(-) ALL, Estimates its pre-tax catastrophe loss during May totaled about $323 mln, with three severe weather-related evenut accounting for over 90% of the estimated loss. The insurer previously reported a $216-mln pre-tax loss in April, bringing its Q2 loss so far of around $539 mln.

(-) AGNC, Declares cash dividend on its 8% Series A cumulative redeemable preferred stock of $0.50 per share, payable July 15 for shareholders of record on July 1.