Bloomberg News

Mexico Stocks Gauge Set for 9-Month High: Mexico City Mover

February 02, 2012

Feb. 1 (Bloomberg) -- Mexico’s benchmark IPC stock index headed for a nine-month high as U.S. economic data buoyed optimism about Latin America’s second-biggest economy.

The gauge climbed 1 percent to 37,797.11 at 12:07 p.m. Mexico City time. A close at this level would be the highest since April 6, 2011. The gauge has recovered 19 percent from a two-year low on Aug. 8.

U.S. manufacturing grew last month at the fastest pace since June in the latest sign of buoyancy in the world’s biggest economy, which purchases about 80 percent of Mexico’s exports. That’s adding to demand for emerging-market assets as concern eases about Europe’s debt crisis, said Ed Kuczma, who helps manage $35 billion at Van Eck Associates in New York.

“Data out of the U.S. has been a little better than expected, so I think Mexico benefits from having a strong neighbor to the north,” Kuczma said by phone. “Globally you’ve seen a reintroduction of risk positions in investors’ portfolios.”

Empresas Ica SAB, the country’s biggest construction company, has led gains among 35 stocks on the IPC this year, advancing 27 percent.

Grupo Televisa SAB, the world’s largest Spanish-language broadcaster, jumped 4.3 percent today after falling for nine straight sessions. The company is awaiting an antitrust ruling on a proposal to acquire a 50 percent stake in mobile-phone provider Grupo Iusacell SA.

--Editors: Brendan Walsh, Jonathan Roeder

To contact the reporter on this story: Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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