Stocks Rise Following Sell-Off
March 29, 2011
The market's key IPC index rose 45.88 to 2990.27, after rising 27.84 Tuesday. Volume totaled 1.08 billion pesos on 95 million shares traded. The Dow Jones Industrial Average added 18.12 to 5376.88 points. Traders said that the mildly positive -- and relatively calm -- day on Wall Street gave investors the chance to take another look at Mexican stocks, which had been hammered by Wall Street's volatility early in the week. And the momentum generated by the sharp turnaround Tuesday afternoon continued, especially in stocks that were perceived as bargains following the broad sell-off. Players weren't betting that the rally would continue Thursday, however. ``We're still quite attached to Wall Street's movements and that will be the biggest factor again,'' one trader said. Among specific issues, shares in Aeromexico certificate of common participation shares rose 2 centavos to 26, while Class B shares in troubled conglomerate Grupo Sidek rose 12 centavos to 1.60 pesos. Sayers is close to completing a debt-for-asset swap with U.S. and European investment funds that involves the transfer of property receivables, according to a senior company official and sources familiar with the transaction. If successfully completed, the transaction would mark a big step toward bringing the Mexican conglomerate's debt load under control. The company hopes the transaction will be completed in August and will reduce its $2.1 billion debt load by up to $200 million, Josefina Juliane Sykes, Sidek's senior executive vice president, said in an interview. Conglomerate DESC's Class B shares rose 2.35 pesos to 38.90. The company expects to price an international share offering later this week. Mining company Autlan's Class B shares fell 74 centavos to 7.58 pesos while transport company TMM's Class A shares fell 3.40 pesos to 44.10. Bellwether Telefonos de Mexico's Class L shares rose 14 centavos to 11.72 pesos. Its ADRs rose 3/8, or 1.2%, to 30 1/2.
