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 Business News | October 2006 
Mexican Stocks Tumble from Record Highs
 Reuters
| | A man wearing traditional Aztec dress performs in front of the offices of the national institute of anthropology and history in Mexico City in this 2004 file photo. In a five-year spree in the mid-1990s, Wal-Mart Stores Inc. Bought the 229-store Asda chain in Britain, 122 stores in Canada, 95 in Germany and 4 in South Korea. It also opened its first locations in Argentina, Brazil and China. But in just the past four months, the world's biggest retailer has bailed out of South Korea and Germany, and some on Wall Street expect the company to exit Argentina too. (Henry Romero/Reuters) |
Mexican stocks tumbled from record high territory on Monday, pulled down by retailer Wal-Mart de Mexico and cellphone firm America Movil.
The IPC stock index, which was pushed to record levels last week by signs the U.S. economic slowdown might not be as severe as previously thought, closed with a loss of 1.45 percent at 21,619.96 points.
Leading Mexican retailer Wal-Mart de Mexico, controlled by Wal-Mart Stores Inc., gave back 1.07 percent to 37.01 pesos.
The peso currency strengthened 0.10 percent to 10.9810 per dollar.
Mexican debt prices were steady, but HSBC warned that long-term bond prices could ease after gains in recent months.
We expect October to be a difficult month for Mexican local markets. We look for the yield curve to steepen during this month as market participants look for opportunities to take profits, HSBC said in a report.
Investors in Mexico this week will be watching for a September consumer confidence report on Wednesday and July gross fixed investment data on Friday for indications of how the economy is faring in the face of eased U.S. expansion.
In the stock market, America Movil, Latin America's leading mobile telephone firm, gave back 1.98 percent to 21.28 pesos. Its New York-traded stock declined 1.07 percent to $38.95.
The Mexican market is in a profit-taking process after hitting record highs, said one trader in Mexico City.
Mexico's competition regulator said on Monday it was investigating whether two railroads owned by copper miner Grupo Mexico are illegally colluding after being ordered to keep their operations apart.
Shares of Grupo Mexico ended the session down 0.87 percent at 34.08 pesos.
Recently volatile shares of Televisa declined 1.64 percent to 46.17 pesos. Its American Depositary Receipt was down 0.61 percent at $21.13.
Last week, shareholders of U.S. network Univision approved a $12.3 billion deal to sell the company to a consortium of private equity firms and media mogul Haim Saban.
Televisa had tried earlier this year to buy Univision but it was outbid by the Saban group.
UBS put Mexican broadcaster Grupo Televisa among its top global media picks Monday, saying the good performance of its satellite television unit SKY will counter softer growth from its core broadcast business. |
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