Mexican stocks surge

02 Dec, 2007

Mexican stocks rose for the fourth straight session on Friday. The benchmark IPC stock index rose 1.26 percent to 29,770.52 points. Mexican stocks and bonds more attractive to yield-hungry investors. Mexico's benchmark 10-year government peso bond gained 0.296 of a point in price to 100.287, pushing its yield down 5 basis points to 7.95 percent.
Bets on a US rate cut have boosted Mexican stocks more than 6 percent since Monday. Before then, shares had dropped about 12 percent in four weeks. In stock trading, shares of America Movil, Mexico's dominant cell phone operator, led the rally, rising 2.35 percent to 33.55 pesos. Its New York-traded shares gained 2.65 percent to $61.66.
Top retailer Wal-Mart de Mexico (Walmex) fell 1.28 percent to 39.44 pesos. Bernanke said late on Thursday a resurgence in financial market strains in recent weeks had dimmed the outlook for the US economy, signalling openness to ease monetary policy again to keep growth alive.
"That backs expectations that the Fed wil Arturo Espinosa, an analyst at Santander in Mexico City. Lower interest rates in the United States make more risky assets like.

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