- MEXICO CITY (Reuters) -- Mexican stocks slumped 4.03 percent
Monday and the peso lost ground as a rout in commodities prices and fears
about rising U.S. interest rates shook the confidence of emerging markets
investors.
-
- The IPC benchmark stock index retreated
812.85 points to close at 19,369.29 points. It was its steepest one-day
drop since Sept. 19, 2002.
-
- The peso weakened 0.77 percent to 11.27
per dollar, its lowest closing in around 14 months.
-
- Stock markets around the world have fallen
sharply in recent weeks, spooked by concerns that U.S. interest rate hikes
could go further than previously expected and by a sell-off in record-high
commodities.
-
- Latin American equities have slid from
recent record highs. Brazil's Bovespa has dropped over 12 percent since
May 10 and Mexico's IPC index has lost about 11 percent. Both countries
currencies have also been hit hard.
-
- "The critical question going forward
for everyone is to what degree is this a correction or to what degree is
this a change in tendency," said Felix Boni, head of analysis at Scotiabank's
brokerage in Mexico City.
-
- "I would also say the fact we didn't
have that much of a rebound on Friday in the Dow and here in Mexico would
suggest ... there is something more serious going on," Boni said.
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- Recent falling prices for copper, gold,
oil and other commodities hurt Mexican mining stocks.
-
- Grupo Mexico, one of the world's largest
copper miners, dropped 4.07 percent to 31.80 pesos.
-
- Cellphone operator America Movil, the
most heavily weighted stock in the IPC index, plunged 6.10 percent to 19.10
pesos and its New York-traded shares weakened 6.15 percent to $34.01.
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- Yields on Mexico's long-term bonds rose
to their highest since early April.
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- The yield on Mexico's peso bond maturing
in 2015 rose 14 basis points to 8.83 percent and the peso bond maturing
in 2024 saw its yield rise 7 basis points to 9.04 percent.
-
- "There's a perception that emerging
markets, above all Brazil and Turkey, are overvalued, and that's ... hitting
us," said one bond trader in Mexico City.
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- http://money.cnn.com/2006/05/22/news/international/
mexico_stocks.reut/index.htm
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