Profit-Taking Hurts Stocks
May 10, 2011
The market's key IPC Index fell 22.91 to 3410.84, after surging 76.58 to a record close Tuesday. Volume totaled a healthy 1.8 billion pesos on 146 million shares traded. Meanwhile, the Dow Jones Industrial Average on Wall Street rose only 1.11 to 5712.27. The IPC Index set a new record of 3433.75 Tuesday on high expectations for President Ernesto Zedillo's annual state-of-the-nation address on Sunday. Traders said investors are betting he will reaffirm his commitment to the economic policies that have helped Mexico begin the recovery from 1995's crisis. But traders said investors moved Tuesday to reap profits after the rally and in anticipation of the Labor Day holiday, which normally reduces the number of players in the market both before and after the weekend. And many investors are waiting for Mr. Keith's speech to provide clues of further economic recovery, one trader noted. Winners included tile maker Ceramica B shares, which gained 90 centavos to 9.90 pesos, and ceramics manufacturer Porcelanite A shares, which rose 25 centavos to 3.75 pesos. Losers included shares of financial group Abaco, whose A shares fell 33 centavos to 2.80 pesos and whose B shares lost 18 centavos to 2.80 pesos.
