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 News Around the Republic of Mexico | January 2005 
Mexican Stocks Off, Peso Up After Moody's Upgrade
 Reuters
Mexico City - Mexican stocks traded lower on Friday as investors cashed in profits on companies with strong gains in 2004 while the peso strengthened, buoyed by a Moody's upgrade on the country's foreign currency ratings.
The IPC benchmark stock index declined 0.93 percent to 12,584 points in morning trade. Profit-taking has brought the index down about 2.4 percent so far this year after a gain of 46 percent in 2004.
The Mexican peso (MEX01) firmed 0.51 percent to 11.3595 per dollar.
Moody's Investors Service on Thursday upgraded Mexico's foreign currency rating to "Baa1" from "Baa2" saying the country has become less vulnerable to external financial shocks.
America Movil (AMXL.MX) , Mexico's No. 1 cellphone company and the most heavily traded stock in the local market, eased 1.71 percent to 28.10 pesos. Its New York-traded stock (AMX.N) was off 1.57 percent to $49.41.
TV Azteca (TVAZTCACPO.MX) eased 1.65 percent to 6.56 pesos and its American Depositary Receipt (ADR) (TZA.N) lost 0.65 percent to $9.24.
While TV Azteca accounts for only about 1 percent of the IPC index, traders said its negative news was weighing on overall market sentiment.
On Tuesday the U.S. Securities and Exchange Commission charged TV Azteca and Chairman Ricardo Salinas with fraud, accusing the controversial businessman of pocketing $109 million in a debt deal.
Brokerages have cut their 2005 target prices on the company or maintained "sell" recommendations, citing ongoing concerns about the outcome of the charges.
Retailer Grupo Sanborns (GSANBORB1.MX) , owned by Latin America's richest man, Carlos Slim, was the top decliner in the bourse after it was dropped from Mexico's IPC index. Its shares fell 3.41 percent to 17.30 pesos.
Cellphone company Iusacell (CEL.MX) , which was also withdrawn from the leading stock index as part of the IPC's annual revision, was off 2.09 percent at 22.55 pesos.
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