Mexican stocks on Friday resumed their rise driven by gains in cellphone operator America Movil and steel maker Hylsamex as the peso firmed on the back of a weak dollar. The IPC benchmark index of Mexico's largest companies rose 0.38 percent to 12,162 points, just shy of its all-time high, while the peso gained 0.28 percent to 11.1390.
"The euro strengthened further and that helped our currency," said one trader. "I think the greenback is headed to a 11.05 pesos per dollar level."
Both markets gave up some gains on Thursday as investors paused following a momentous three-month rally that has pushed many local stocks to all-time highs over the past three months. On Wednesday, the IPC closed at a record peak of12, 223.91 points.
On Friday, Hylsamex extended its stellar rise, trading 2.76 percent stronger on Friday to 35.05 pesos. Its B shares are up more than 400 percent this year, with investors buying into the company amid strong global demand and higher prices for steel.
Hylsamex, Mexico's No 3 steel maker, told Reuters on Friday that it is looking at mergers, acquisitions or even a sale following the company's rags-to-riches turnaround story in recent months.
Its L shares also firmed 2.64 percent to 34.95 pesos on Friday.
Meanwhile America Movil, the most heavily weighted stock in the IPC index, rose 0.35 percent to 26.26 pesos and its American Depositary Receipt added 1.53 percent to $47.18.
Morgan Stanley increased the company's price target to $56 from $47 on Friday, citing further acceleration in the company's subscriber growth.