Mexican stocks jump

Mexican stocks edged up on Friday to close at a record high for the seventh straight session, after the central bank left monetary policy flat and as steelmaker Hylsamex rose on talk it could be acquired. The IPC benchmark stock index ended with a 0.04 percent gain at 13,714.63 points, bringing its return in the year-to-date to about 6.2 percent. Mexico's central bank left monetary policy unchanged at its twice-monthly review on Friday after zero inflation last month showed progress in the battle against rising prices.
The decision had been expected by the majority of analysts in a Reuters poll. Financial markets were steady, with the peso off about 0.11 percent at 11.1520 per dollar.
Analysts say Mexico's central bank will continue to watch US interest rates to ensure its own monetary policy remains effective.
"The need for Mexico's central bank to continue to match US Federal Reserve hikes will keep the peso supported near- term," HSBC said in a report on Friday.
No 3 Mexican steelmaker Hylsamex rose 1.01 percent to 38.06 pesos, helped for a second day by market talk a US company is preparing a bid for it that could emerge as soon as this weekend.
Cellphone operator America Movil, the most heavily weighted stock in the IPC index, eased 0.13 percent to 31.27 pesos and its American Depositary Receipt (ADR) lost 0.12 percent to $56.10.
Blue-chip retailer Wal-Mart de Mexico, controlled by Wal-Mart Stores Inc, lost 0.24 percent to 41.19 pesos after spending much of the day in positive territory.
Penoles, the world's top silver producer, rose 2.44 percent to 60.43 pesos as silver futures jumped 3.5 percent on the New York Mercantile Exchange's COMEX.
Stocks in Mexico have risen strongly in recent weeks on expectations of strong corporate earnings.
Arka brokerage technical analyst Juan Jose Resendiz said he sees the IPC topping out at about 14,000 points toward the end of the month.
"I'm very much of the opinion that there could be some profit-taking in March. Fourth-quarter earnings reports are already arriving and there should not be any other surprises," he said.
Mexican companies traded on the local stock market have until February 25 to report their quarterly results.