Mexican stocks top 16,000 points

Mexico's IPC stock index closed at a record high on Friday, breaking above 16,000 points for the first time as investors seeking higher returns than those offered by relatively low-yielding bonds bid up prices.
The IPC index jumped 1.76 percent to 16,120.08 points, with heavyweights America Movil and Telmex accounting for much of the gain. The peso currency added 0.33 percent to 10.7635 per dollar in what some traders said was a technical bounce.
Mexico, which is enjoying steadily improving corporate earnings and economic stability, has seen its currency gain and its stock market rise 25 percent so far this year as foreign investors look to earn more than the relatively low returns on safe-haven US Treasuries. Recent cuts in Mexican interest rates have also made the country's stock market more attractive. The IPC index in September surged 13.18 percent, its largest monthly jump since January 2001 when it stacked up a gain of almost 15 percent.
Stocks within Mexico's main index now sell for about 14 times earnings, expensive compared to stocks listed on Brazil's Bovespa, priced at 10 times earnings.
"But a lot of global funds have to stick to investment grade, and Mexico has that," said Jorge Lagunas, an analyst at Interacciones brokerage in Mexico City, adding he expects to see more of the same next week. Cellphone operator America Movil, the most heavily weighted stock in the IPC index, climbed 3.05 percent to 14.19 pesos and its New York-traded shares were 2.89 percent higher at $26.32.
The stock of fixed-line telephone company Telmex picked up 3.15 percent to 11.46 pesos and its New York-traded shares added 3.65 percent to $21.27.
The Colombian government backed out of a deal this week to sell state-owned firm Telecom to Telmex, and instead said it would put Telecom up for auction.
Billionaire Carlos Slim, who controls Telmex, told Reuters on Thursday he would look at other investment options in Colombia even if its troubled attempt to buy state-owned Telecom fails.
Cement maker Cemex, which this week held a $1.5 billion share offer, moved up 2.5 percent to 56.24 pesos and its New York-traded share ended 2.71 percent higher at $52.30.