 |
|
|
 Business News | March 2007 
Mexican Markets Up on Recovery in Global Equities
 Reuters
| | Traders work at the main floor of the Mexican stock market in Mexico City, Wednesday Feb. 28, 2007. (AP/Dario Lopez-Mills) |
Mexico City - Mexican stocks, government bonds and the peso all rose on Tuesday as global equities markets rebounded from a week-long slump.
The benchmark IPC stock index rose 1.99 percent to 26,299 points, while the peso firmed 0.32 percent to 11.141 per dollar.
Exchanges across Asia, Europe, Latin America and the United States staged recoveries on Tuesday after big losses triggered by a plunge in Chinese equities last Tuesday.
Mexican equities lost 8 percent over the five-session rout, which was also fueled by a strengthening Japanese yen.
A stronger yen encourages investors to dump higher-yielding assets like equities and emerging market bonds that they funded with borrowed yen. The yen weakened sharply on Tuesday.
Yet market watchers were wary that Tuesday's gains signaled an end to the sell-off.
"The market looks good for the moment, but I would not be talking about a change in tendency yet," said a stock trader in Mexico City.
Nevertheless, investors poured money into Mexico, pushing up demand for the peso as they snapped up equities and local currency bonds.
The price on the benchmark 10-year peso bond rose 0.573 for a yield of 7.79 percent. The benchmark 20-year note gained 0.977 for a yield of 7.88 percent. Bond yields move inversely to price.
Peso bonds are also being supported by rising expectations that inflation will slow quickly enough to keep the central bank from raising rates any time soon. Fears of an imminent rate hike pummeled peso bonds just before the global equities sell-off began.
In stock trading, dominant cellphone operator America Movil rose 2.04 percent to 24.06 pesos, while its New York-traded shares were up 2.61 percent at $43.20.
Shares of Cemex, the world's No. 3 maker of cement, rose 2.63 percent to 36.69 pesos, while its New York-traded shares were up 3.03 percent at $33.
Leading retailer Wal-Mart de Mexico (Walmex) rose 1.88 percent to 43.90 pesos. |
| |
|
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us