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 Business News | January 2005 
Mexico Stocks Set Record, Peso up on S&P Upgrade
 Reuters
Mexican stocks hit a record high on Monday and the peso posted gains after Standard & Poor's raised its main credit rating for the country, opening the door to new investors.
 Mexico City - S&P said it raised Mexico's long-term foreign currency sovereign credit rating to 'BBB' from 'BBB-'.
The ratings agency also raised Mexico's long-term local currency sovereign credit rating to 'A' from 'A-' and its short-term local currency sovereign credit rating to 'A-1' from 'A-2'.
Higher credit ratings for emerging market countries imply an improved level of economic and financial stability, generating increased interest from investment funds.
The IPC benchmark stock market index was up 0.9 percent after shooting to an all-time high of 13,167.08 points before easing back slightly.
The peso (MEX01: Quote, Profile, Research) gained about 0.64 percent to 11.1725 per dollar after S&P's announcement.
"We think it will be difficult for (the peso) to return to more than 11.25," said a foreign exchange trader in Mexico City who predicted selling at about 11.17 per dollar.
Shares of Mexico's top cellphone operator America Movil (AMXL.MX: Quote, Profile, Research) were up 0.9 percent to 29.80 pesos, while its U.S.-traded stock (AMX.N: Quote, Profile, Research) gained 1.6 percent to $53.37.
Last week, America Movil reported a stiff 71 percent drop in earnings for the fourth quarter, caused by a hefty tax charge. But investors bought the telecom's stock because of healthy growth in revenues and subscribers.
Homebuilder Homex (HOMEX.MX: Quote, Profile, Research) rose 3.4 percent to 49.95 pesos after the company anticipated strong results this year and next as it benefits from a housing boom and increased access to lending.
Its U.S.-traded shares (HXM.N: Quote, Profile, Research) jumped 3.5 percent to $26.60.
Mexican stocks have been volatile in recent weeks as investors have tested all-time highs while awaiting fourth-quarter corporate earnings. |
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