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Mexican share

prices softer

MEXICO CITY: Mexican share prices pared their midday losses but ended soft on fears of a hike in domestic interest rates, traders said on Tuesday.

The IPC index of 37 leading share closed off 4.22 points, or 0.17 percent, at 2,489.29.

The bourse began higher on carryover buying from Monday's gains, but soon drifted lower. A midday turnaround on the Dow Jones' gave local stock a lift before the closing bell. Turnover was moderate at 83.2 million shares.

The market's mood was darkened by an expected jump of as much as two percentage points in domestic interest rates. Analysts said interest rates are under pressure because of uncertainty leading up to Mexican President Ernesto Zedillo's first State of the Nation address on Friday.

The equity market has been the most bullish of the financial markets regarding Zedillo's speech. Analysts expect a broad outline of future economic policy that could include details of increased government spending.

Decliners outpaced gainers on the broad market. The biggest decliner was textile firm Synkro B and tourism firm Sidek L, off 15.73 percent. Analysts said both firms had not caught up with recent market losses. Heavily-weighted Telmex L slipped 0.98 percent.-Reuter