Mexican stocks finished higher on Friday, rebounding from recent losses but trimming stronger gains from earlier in the session amid political concerns. The IPC benchmark stock index rose 0.29 percent to 12,714.19 points. "We feel the market is having ups and downs over political questions," said one trader. In a case polarising Mexican politics and weighing on markets, a legislative commission was due to vote on whether the lower house of Congress should strip leftist Mexico Mayor Andres Manuel Lopez Obrador of his judicial immunity so he can be prosecuted on a charge of contempt of court.
If formally charged, the mayor could be barred from running in the July 2006 presidential election, which he is favoured to win.
Lopez Obrador has worried some Wall Street investors with his vows to overhaul Mexico's economic policies if elected.
Mexico's IPC index hit a record high in early March after strong quarterly earnings reports but has fallen about 9 percent since then as investors take profits off the table. Rising interest rates in recent days have also kept the stock market volatile as some investors switch into bonds.
Traders said Friday's stock gains were a typical bounce after steep declines earlier this month.
Among Friday's gainers, cellphone operator America Movil picked up 0.83 percent to 29.02 pesos and its American Depository Receipt (ADR) added 1.01 percent to $52.12.
Peru awarded a license to run its fourth mobile network to America Movil on Wednesday.
Cemex, the world's third-largest cement company, was up 1.31 percent at 82.20 pesos, while its ADRs gained 1.66 percent to $36.85.