Mexican stocks reversed early losses and closed up 0.36 percent on Friday, its sixth consecutive day of gains, on the back of cement maker Cemex and as concerns eased about a possible rise in US interest rates. The IPC stock index rose 74.85 points to close at 21,046.63 points.
Investor sentiment was buoyed earlier this week by US economic data suggesting US policymakers may not need to push interest rates higher in the near term. When US rates rise, investors tend to pull money away from emerging markets like Mexico as they seek better returns.
A decline in the stock price of retailer Wal-Mart de Mexico had kept the bourse in the red for most of the session after Citigroup downgraded its recommendation on the company to "hold" from "buy," citing valuation.
Walmex's shares finished down 0.80 percent at 37.34 pesos after setting an all-time high earlier this week. Citigroup also raised its target price on the company to 40 pesos from 36 pesos. Cemex, the world's No 3 cement maker, added 1.56 percent to close at 31.82 pesos.
America Movil, the leading cellular phone company in Latin America, inched up 0.15 percent to 20.58 pesos. The peso weakened 0.27 percent to 10.8240 to the dollar. Investors are keeping an eye on Mexico's political crisis after last month's presidential election, but have so far shrugged off protests by leftists claiming vote fraud.
Hundreds of riot police in body armour sealed off Congress with roadblocks and a metal wall this week to keep leftist protesters away, after a violent clash over Mexico's disputed presidential election.
For nearly three weeks, supporters of Andres Manuel Lopez Obrador, the left-wing candidate who narrowly lost the election, have protested the result by camping out in Mexico City's giant Zocalo square, the symbolic center of political power, and along the city's central Reforma Avenue. But most investors expect conservative Felipe Calderon, who won the July 2 vote by a thin margin, to become president.