Mexico Stocks Close Higher On Boost From ECB Liquidity Accord
September 15 2011 - 5:06PM
Dow Jones News
Mexican stocks closed higher Thursday as the European Central
Bank and top global counterparts agreed on a plan to increase
dollar liquidity for euro-zone banks, giving investors some good
news after euro-zone debt fears had kept markets jittery.
The IPC index of the 35 leading shares gained 1.5% to 35181
points on volume of 285.1 million shares valued at 6.73 billion
pesos ($520 million). The index gained 4% during the
holiday-shortened trading week, with markets closed Friday for
Mexico's Independence Day.
Among blue chips, retail and infrastructure stocks delivered
strong showings.
Mexico's top retailer Wal-Mart de Mexico (WMMVY, WALMEX.MX) V
shares rose 2.2% to MXN32.08, while rival retailer Soriana
(SORIANA.MX) B shares added 5.1% to MXN29.03.
Construction firm Empresas ICA (ICA.MX) shares gained 2.6% to
MXN18.23, and highways operator OHL Mexico (OHLMEX.MX) shares were
higher by 3.4% to MXN23.78.
Mexico's top broadcaster Televisa (TV, TLEVISA.MX) CPO shares
rose 2.3% to MXN51.19, and soda bottler Coca-Cola Femsa (KOF,
KOF.MX) L shares gained 2.6% to MXN122.07.
From the market open, stocks got a lift on news that Europe's
central bank, the U.S. Federal Reserve and top global counterparts
agreed to increase dollar liquidity to stave off a possible
liquidity crisis, even though underlying debt problems remain for
several euro-zone nations.
In U.S. data, industrial production rose 0.2% in August, beating
expectations of a flat reading. August factory production rose
0.5%, led by stronger production of autos and parts. U.S. and
Mexican manufacturing performance are closely linked due to deep
trade ties.
Separately, Bank of Mexico Gov. Agustin Carstens said the
central bank is comfortable with its current 2011 forecasts, and
that the current balance of risks in Mexico calls for "neutral"
monetary policy, suggesting now is not the time for a cut in
interest rates. Carstens, speaking in New York, also said 2012
economic growth in Mexico could be a little higher than the
government's estimate of a 3.5% expansion next year.
-By Laurence Iliff, Dow Jones Newswires; (52-55) 5980-5184,
laurence.iliff@dowjones.com