Mexican stocks gain

Mexican stocks rose on Friday as new rules will take effect next week allowing the country's pension funds to invest a larger part of their portfolio in stocks. The benchmark IPC index ended up 0.34 percent in light trading to 30,089.90 points and the peso currency was flat at 10.6955 per dollar at the official central bank close.
In debt trading, long-term bond yields fell for the fourth day in a row. The price of the benchmark 10-year government peso bond rose 0.069 of a point to bid 101.916, pushing its yield down 1 basis point to 7.47 percent. Traders said equities were helped by anticipation of fresh liquidity hitting the market on Monday.
Ixe brokerage said in a research note that some 42 billion pesos ($3.9 billion) from funds could eventually flow into Mexican equities. "This is putting a new floor under the stock market," one trader said. "If you want to maintain an attractive return in your fund, you better be in the market, and you better buy before it rises."
Mexican equities were firmer than US stocks as worries about credit-related problems continued. Bad news in the US is usually negative for Mexico, which sends some 80 percent of its exports to its northern neighbour. But since last week, Mexico has been outperforming US markets. Measures taken by the US Federal Reserve to inject liquidity into stretched financial markets have dampened worries that Mexico's chief trading partner could fall into a deep recession.
Growing optimism that President Felipe Calderon will be able to push an energy overhaul bill through the nation's divided Congress in April also bolstered equities, traders said. Among gainers on the day, Mexico's biggest retailer Wal-Mart de Mexico (Walmex) rose 1.94 percent to 43.57 pesos.
Shares of holding company Carso Telecom, used by Mexican tycoon Carlos Slim to control fixed line giant Telefonos de Mexico (Telmex), advanced 3.14 percent to 55.80 pesos.
Among losing shares, Cement maker Cemex, the world's No 3 cement producer, shed 3.17 percent to 27.76 pesos as the company's New York traded stock fell 3.36 percent to $25.88. Santander cut its rating on Cemex to "hold" from "buy" on Thursday, citing the US housing crisis and a slowdown in sales in its key Spanish market.