AGL 38.15 Decreased By ▼ -1.43 (-3.61%)
AIRLINK 125.07 Decreased By ▼ -6.15 (-4.69%)
BOP 6.85 Increased By ▲ 0.04 (0.59%)
CNERGY 4.45 Decreased By ▼ -0.26 (-5.52%)
DCL 7.91 Decreased By ▼ -0.53 (-6.28%)
DFML 37.34 Decreased By ▼ -4.13 (-9.96%)
DGKC 77.77 Decreased By ▼ -4.32 (-5.26%)
FCCL 30.58 Decreased By ▼ -2.52 (-7.61%)
FFBL 68.86 Decreased By ▼ -4.01 (-5.5%)
FFL 11.86 Decreased By ▼ -0.40 (-3.26%)
HUBC 104.50 Decreased By ▼ -6.24 (-5.63%)
HUMNL 13.49 Decreased By ▼ -1.02 (-7.03%)
KEL 4.65 Decreased By ▼ -0.54 (-10.4%)
KOSM 7.17 Decreased By ▼ -0.44 (-5.78%)
MLCF 36.44 Decreased By ▼ -2.46 (-6.32%)
NBP 65.92 Increased By ▲ 1.91 (2.98%)
OGDC 179.53 Decreased By ▼ -13.29 (-6.89%)
PAEL 24.43 Decreased By ▼ -1.25 (-4.87%)
PIBTL 7.15 Decreased By ▼ -0.19 (-2.59%)
PPL 143.70 Decreased By ▼ -10.37 (-6.73%)
PRL 24.32 Decreased By ▼ -1.51 (-5.85%)
PTC 16.40 Decreased By ▼ -1.41 (-7.92%)
SEARL 78.57 Decreased By ▼ -3.73 (-4.53%)
TELE 7.22 Decreased By ▼ -0.54 (-6.96%)
TOMCL 31.97 Decreased By ▼ -1.49 (-4.45%)
TPLP 8.13 Decreased By ▼ -0.36 (-4.24%)
TREET 16.13 Decreased By ▼ -0.49 (-2.95%)
TRG 54.66 Decreased By ▼ -2.74 (-4.77%)
UNITY 27.50 Decreased By ▼ -0.01 (-0.04%)
WTL 1.29 Decreased By ▼ -0.08 (-5.84%)
BR100 10,089 Decreased By -415.2 (-3.95%)
BR30 29,509 Decreased By -1717.6 (-5.5%)
KSE100 94,574 Decreased By -3505.6 (-3.57%)
KSE30 29,445 Decreased By -1113.9 (-3.65%)

Mexican markets jumped on Friday after the US Federal Reserve surprised investors by cutting its rate on loans to banks to keep credit flowing and calm nervous global markets. The benchmark IPC stock index closed 2.58 percent higher at 28,510.66 points, its biggest gain in five months.
Mexico's IPC stock index has tumbled about 12 percent in the last five weeks as concerns about tighter lending conditions fuelled a sell-off world-wide of higher-risk assets. "The Fed's action reassures investors somewhat because it lets them know the central bank is on the case," said Rogelio Gallegos, a fund manager at Actinver brokerage in Mexico City.
But investors were also taken aback by the Fed's stark warning about growth, with some market players worried that the crisis sparked by a meltdown in US risky mortgage lending was far from over. "It makes me think that things are much worse than we thought," said a stock trader in Mexico City.
Shares in dominant cell phone operator America Movil, the most heavily weighted stock on the IPC index, advanced 5.97 percent to 32.12 pesos, while its New York traded shares rocketed up 7.12 percent at $58.06. Leading retailer Wal-Mart de Mexico (Walmex) jumped 2.24 percent to 35.08 pesos.
Broadcaster Televisa was up 3.26 percent at 54.21 pesos, while its New York traded stock gained 3.53 percent to $24.31. The benchmark government 10-year peso bond jumped 1.027 points to bid 100.287, pushing its yield down 17 basis points to 7.95 percent. Bond yields move inversely to their price.
Before the market open, the Fed cut its primary discount rate, which governs direct loans from the central bank to commercial banks, to 5.75 percent from 6.25 percent, saying that risks to US economic growth had risen "appreciably." The Fed's move validated market expectations of more rate cuts this year, which would make emerging market assets like Mexican stocks and bonds more attractive to yield-hungry investors.

Copyright Reuters, 2007

Comments

Comments are closed.