12Mar

Mexico Stocks, Peso Lose Ground In Early Trade

MEXICO CITY (Dow Jones)--Mexican stocks were lower early Monday as the local bourse opened an hour earlier than usual to align trading with that of the U.S., which moved to daylight-saving time from standard time on Sunday.

--IPC stock index down 0.4% in early trade

--Stock market moves trading up by an hour to align with US

--MXN weaker on concerns about Chinese economy

 

Trading activity was typical, with 23 million shares having traded worth 402 million pesos ($32 million). The IPC index was recently down 0.4% to 37553 points. The index lost 1.7% in the previous week.

Mexican brokerage Vector said that amid the downdraft, the IPC could be heading toward 37300 points.

The peso was also losing ground, at MXN12.7370 to the U.S. dollar compared with MXN12.6725 at the close Friday amid concerns about world economic growth.

U.S. stocks were gaining, despite trade data from China that raise growth concerns about the world's second-largest economy, and ahead of a meeting of euro-zone finance ministers.

Among Mexican blue chips, wireless carrier and market benchmark America Movil was off 0.7% to MXN14.83 and cement maker Cemex was down 1.3% to MXN9.99.

Cemex said Sunday that it has extended until March 23 the early participation date for holders of its euro bonds and perpetual notes wishing to participate in the company's debt swap offer. Early participants are entitled to fees, such as EUR50 for every EUR1,000 of principal tendered on the euro bonds.

Cemex also revealed participation rates so far for the tender. Holders of the euro bonds, for instance, have already offered to exchange 53% of the outstanding notes.

Separately, on Friday, Cemex said it will pay at least $361 million in back taxes after losing a dispute with the Mexican government over money owed on proceeds from foreign subsidiaries.

Posted in Politic / Economic issues