Mexican stocks dipped on low volume on to close lower on Friday, but the peso gained, after the central bank left monetary policy unchanged. The IPC benchmark stock index declined 0.22 percent to end at 9,790.62 points with 28 million shares traded.
"We all took it easy because of the inauguration of the Olympics," said Jesus Viveros, an analyst at consulting company Bursametrica in Mexico City. "As a result, trading volume was pretty low."
The central bank left monetary policy unchanged at its twice monthly inflation review, a decision that was expected by most economists after tame price rises in July and a market- led increase in local interest rates eased worries about inflation.
The monetary policy decision "was unimportant to the stock market because it was expected," one Mexico City trader said.
The peso strengthened 0.42 percent to 11.3850 to the dollar, which lost against several currencies after data showing a record US trade deficit in June cast doubt on the US economy's recovery. In stock market trading, Wal-Mart de Mexico (Walmex), the country's largest retailer, ticked 0.32 percent lower to 34.74 pesos.
Cellphone company America Movil, the most heavily weighted stock in the IPC index, lost 0.37 percent to end at 18.71 pesos. Its New York-traded shares ended off 0.40 percent at $32.78.
The IPC benchmark index is down 3.22 percent so far in August, but gained 11.32 percent in 2004. The upcoming weekend is the last in Mexico before children return to school and many investors took Friday off for vacation, traders said.
Investors in Mexico will be watching for June retail sales on Thursday, but otherwise will look to US markets for direction, traders said.
Leading Mexican construction company ICA, which said on Thursday the Panamanian government would pay $25 million to cover the additional construction costs of a toll highway project, gave back 0.95 percent to 3.14 pesos. Its American Depositary Receipt trickled 0.58 percent lower to $1.70.
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