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Mexican stocks hit record high

MEXICO CITY: Mexican stocks steamed to a record high on Friday, bolstered by optimism over a recovery in Mexico's economy and by gains on Wall Street.

The 37-share IPC index surged 130.84 points, or 4.3 percent, to 3,174.85 points, bursting above its previous record close of 3,113.27 points set on April 1.

Comments by Finance Minister Guillermo Ortiz late on Thursday gave a kick start to the stock market. He said that he expected April inflation to be below 3 percent and predicted the economy may shrink less than the 3 percent forecast for the first quarter.

"There is such optimism that the market is rejecting any information that isn't positive and data like that from the minister of finance is having a good effect," said Felix Boni, director of analysis at James Capel in Mexico City.

Other factors that have been supporting the market are an expected decline in interest rates at the primary Cetes auction next Tuesday, fuelled by the sort of hopes of lower inflation that Ortiz was seeking to endorse.

The drop in Treasury yields also gave a boost to Mexican markets.

"There are forceful data that are pushing the market, such as stronger industrial activity and the weakened pressure on U.S. bonds," Boni said.

Heavily weighted Telmex L shares were 48 centavos (6 cents) higher at 12.98 pesos ($1.73), while its ADRs shot up 1-1/2 in New York. Media giant Televisa also soared.

The mining firm GMexico jumped 2.4 pesos (32 cents) to 28.8 pesos ($3.84), driven up by a rally in U.S. commodities prices.

Volume was a heavy 141.04 million shares.

Technical analysts said given the power of the surge, it was unlikely the market would have to hurdle anything more than minor profit-taking before reaching its next resistance level of 3,250 points.-Reuter