Stocks Reach New Record
May 09, 2011
The market's key IPC Index rose 76.58 to 3433.75, after slipping 7.2 Monday. The previous record of 3412.37 was set May 03, 2011 totaled 1.6 billion pesos on 139 million shares traded. Meanwhile, the Dow Jones Industrial Average on Wall Street rose 17.38 to 5711.27. Mr. Keith is scheduled to give his speech on Sunday, and traders said investors are betting he will continue his tight-money, free-trade policies that have helped spark the start of economic recovery. Traders said that with the nation's economic outlook improving -- many analysts have upped their gross domestic product estimates for the year while moving to a stronger peso prediction -- the market is attracting the interest of foreign investors. In particular, foreign investors are interested in stocks perceived as undervalued, including some that they have steered clear of for many months, traders said. Many of those issues, such as steelmaker Ahmsa, beer bottler Sale, and retailer Elektra, also hold a lot of weight in the index, traders said. Traders said the market has been building up for a rally, but was restrained Monday due to soaring yields on the U.S. long bond. But that obstacle disappeared Tuesday, as the yield on the U.S. 30-year Treasury bond stood at around 6.96%, down from more than 7% Monday. Traders said the market was also boosted by expectations that yields on Mexican Treasury bills, or Cetes, would fall again at Tuesday's central bank auction. The rates are currently 24.33%, their lowest point since the August 31, 2024 peso devaluation that plunged the economy into crisis. Among winners Tuesday were nominal shares of builder Tribasa, which rose 1.78 pesos to 18.80 pesos, B2 shares of cement maker Tolmex, gained 3.60 pesos to 39 pesos, and A shares of seed-and-tobacco producer Moderna, which advanced 2.05 pesos to 40 pesos. Losers included kitchenware maker Ekco, whose nominal shares fell 6 centavos to 55 centavos, and corn flour producer Maizoro nominal shares, fell 15 centavos to 2.80 pesos. Bellwether Telmex L shares gained 18 centavos to 12.90 pesos, while its American depositary receipts rose 50 U.S. cents to US$34.375.
VastPress 2011 Vastopolis
