Mexican stocks surged 1.14 percent to a record close on Wednesday, led by telecommunications companies Telmex and America Movil. The benchmark IPC stock index added 153.88 points to end at 13,662.38, its fifth straight all-time closing high, thanks to optimism ahead of fourth-quarter company results due to be reported this month. The peso strengthened about 0.4 percent to 11.16 per dollar. America Movil, one of Latin America's leading mobile telephone operators, shot 2.25 percent higher to a record close of 31.84 pesos. Its New York-traded shares gained 2.41 percent to $56.99.
Morgan Stanley raised its target price for the company on Wednesday to $67 from $56, anticipating further strong subscriber growth and increased revenue per customer.
"America Movil management's strong execution remains the main driver for upward earnings estimate revisions," Morgan Stanley analyst Vera Rossi said in a report.
Fixed-line telephone company Telefonos de Mexico (Telmex) benefited from the America Movil gain, rising 3.66 percent to 22.36 pesos. Its American Depositary Receipt picked up 4.14 percent to $39.98.
Homebuilder Homex, a recent stock market winner, shed 4.62 percent to 56.96 pesos after Merrill Lynch late Tuesday downgraded its rating on the stock to "neutral" from "buy," citing its recent rise.
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