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 Business News | July 2006 
Mexican Stocks Down Amid Election Results
 Reuters
Mexican stocks closed down more than 1 percent Friday, ending a rally after conservative Felipe Calderon won the most votes in the presidential election.
The slide tracked a general trend across Latin America, as markets fell along with Wall Street on a disappointing U.S. payroll report for June.
Mexico's key IPC index of the 35 most-traded companies closed down 1.1 percent, or 218.02 points, to 19,829.60.
That followed a rally of more than 500 points the previous day, as the official presidential vote tally showed Calderon winning 15 million votes, 243,000 more than leftist rival Andres Manuel Lopez Obrador.
Lopez Obrador plans to challenge the results before the Federal Electoral Tribunal, and called for a recount. Only the tribunal can validate the election and declare a president-elect.
But traders said the market reacted Friday to a higher-than-expected rise in hourly earnings in the U.S. payroll report, which sparked further concerns about the future direction of interest rates.
Higher interest rates in the U.S. and other developed nations typically sap investment funds from emerging market countries.
The Mexican peso grew stronger, closing at 10.995 to the dollar, up from 11.058 at Thursday's close. It was the first close below 11 since May 11.
Brazil's Ibovespa index sank 1.2 percent to close at 36,102 points. The real closed at 2.182 per dollar, slightly stronger from Thursday's close of 2.184.
Argentina's benchmark Merval Index fell 0.56 percent to 1,704.68 points, while the broader General Index fell 0.77 percent to 81,424.08. The peso ended flat at 3.0875 to the dollar.
Chile's 40-share benchmark Ipsa index closed at 2,110.94, down 0.6 percent from 2,123.55 Thursday. |
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