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Mexico's stock market rallied to its seventh consecutive record close on Friday. The benchmark IPC stock index ended up 0.46 percent, or 117.50 points, at 25,756.81 points, buoyed by firmer US stocks and upbeat end of year sentiment.
On Friday, top gainers included leading retailer Wal-Mart de Mexico (Walmex) which surged 3.50 percent to close at 44.09 pesos after the company posted a stronger-than-expected rise in November same-stores sales.
Also helping the stock, BBVA Bancomer brokerage this week raised its rating on Walmex to "above market performance" from "maintain" and lifted its end-2007 price target to 50.building materials firm Rinker.
Telmex, Mexico's leading fixed-line phone company, shed 0.46 percent to 15.31 pesos, after surging more than 3 percent on Thursday on a market rumour the company could merge with its holding firm Carso Telecom.
Telmex, controlled by Mexican billionaire Carlos Slim, denied the rumour. On Friday its New York-traded shares were up 0.5 percent at $28.21. The peso firmed 0.5 percent to 10.838 per dollar after S&P said Mexico could see the outlook on its BBB sovereign rating rise to "positive" from "stable" if new President Felipe Calderon shows he can work with Congress, boosting his chances of pushing through key economic reforms.
A positive outlook would signal that a ratings upgrade was more likely, something that would draw more investment into Mexico and push up demand for the peso.

Copyright Reuters, 2006

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