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Equities slightly

higher in Mexico

MEXICO CITY: Mexican shares ended slightly higher on a firm Dow Jones and the prospect of lower interest rates after drifting aimlessly for much of the session, traders said.

The key IPC index closed 4.45 points higher, a gain of 0.18 percent, at 2,489.55. Turnover weakened compared with previous sessions and ended at a moderate 82 million shares.

The market has been rattled by fears over the depth of the economic recession, but some investors and betting the Mexican government will take new steps to boost economic growth.

The government is also expected shortly to announce a new plan to reduce interest rates and bring down soaring levels of bad debt. Analysts said the move may be good for consumers, but may hurt bank margins.

Financial groups suffered during the session. GFInbur fell 4.43 percent, GSerfin BCP slipped 3 percent and Banacci A fell 2.25 percent.

Another notable decliner was telcomms firm Iusacell D, which tumbled 18.31 percent on worries about its domestic sales, analysts said.

Big gainers were tourism firm Posadas A, up 8.33 percent, steel-maker Tamsa *, up 8.24 percent, and pharmaceutical company Nadro B, up 5.03 percent.-Reuter