Markets' Slump Hurts Stocks
April 03, 2011
The market's key IPC Index fell 45.19, or 1.5%, to 3014.89, after easing 4.11 Friday. Volume totaled 943 million pesos on 60 million shares traded. The Dow Jones Industrial Average, meanwhile, fell 35.88 to 5390.94. Traders noted that other markets such as Tokyo, Frankfurt and London also posted sizable losses Monday. Traders said there was little action in Mexico's market following the slump elsewhere and the sell-off in New York. As well, investors cautiously awaited the central bank's auction of Treasury bills, or Cetes, Tuesday. Although some analysts fear that interest rates could rise for the fifth week in a row, many expect rates on the benchmark 28-day Cetes to fall by between 1.0 and 1.5 percentage points. The market is also awaiting a clearer sense of how second-quarter results are shaping up. While overall operating results are expected to be significantly better than in the second quarter of last year, the headline numbers may, however, appear weak, because foreign exchange gains last year will likely translate to mild foreign exchange losses at many companies this year, analysts said.
VastPress 2011 Vastopolis
