Mexican stocks at record close

13 May, 2007

Mexican stocks rose to a record high close on Friday, boosted by gains in heavyweight cell phone operator America Movil and stable US inflation data. The IPC stock index jumped 1.37 percent to end at 30,058.75 points.
In stock trading, America Movil, the most heavily weighted stock in the IPC index, rose 1.77 percent to 29.87 pesos, building on investor optimism about the company since late March. Its New York-traded shares gained 2.29 percent to $55.31.
Leading retailer Wal-Mart de Mexico climbed 0.66 percent to 42.42 pesos. The peso firmed 0.22 percent to 10.8105 to the dollar. The yield on Mexico's 10-year peso bond edged down 3 basis points to 7.67 percent. Mexican assets were lifted by indicators in the United States that showed producer prices rose 0.7 percent in April. The so-called core rate, which strips out volatile food and energy costs, was unchanged from March.
The moderate inflation may help quell concern over the outlook for US interest rates. Lower interest rates in the United States would make Mexican and other emerging markets assets more attractive to US investors.

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