Mexican stocks edged up on Friday as bargain hunters bought up shares of retailer Walmex and other beaten-down stocks, after a see-saw session that capped a week of heavy losses amid concerns of a looming US recession.
The benchmark IPC stock index closed up 0.06 percent at 26,713.83 points. Earlier on Friday it lost as much as 1.4 percent and gained up to 1.7 percent. The benchmark government peso bond gained 0.387 of a point to bid 100.67, pushing its yield down 7 basis points to 7.88 percent.
Concerns that the economy in the United States, Mexico's top trading partner, could contract have sent the IPC index down almost 10 percent so far this year, nearly erasing all of its gains in 2007. Investors worried that a White House stimulus package announced on Friday might not keep the United States from sliding into recession.
President George W. Bush said that steps were needed to shore up the US economy and recommended an economic stimulus package equal to about 1 percent of US gross domestic product, according to a White House document. Disappointment over the plan hit equities markets across the Americas and in Europe.
Top retailer Wal-Mart de Mexico (Walmex) pushed hardest among winners, rising 2.66 percent to 37.10 pesos. Conglomerate Group Carso rose 4.04 percent to 41.73 pesos. On the losing end, dominant cell phone operator America Movil fell 1.65 percent to 28.65 pesos. Its New York traded shares dropped 1.05 percent to $52.70.