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Mexico stocks lower

MEXICO CITY: Mexico's stock market ended 0.357 percent or 11.89 points lower to 3,315.35 points on Tuesday, dragged down by a falling Dow Jones, dealers said.

The Dow Jones Industrial average fell sharply during trading as investors took profits.

"Although primary interest rates are seen falling, the stock market was responding to the fall in New York," one dealer said.

Primary interest rates are seen falling at Mexico's Cetes auction today, with the bellwether one-month paper seen falling up 50 basis points to 100 basis points.

Analysts said that in the medium term are good signs that the Mexican exchange will continue advancing as economic fundamentals begin to show better signs.

They point to lower interest rates as being favourable to better growth, as long as the peso holds up.

"Expectations are favourable for the bolsa, but it depends a lot on the reaction of the exchange market," said on dealer.

Telmex was one of the companies hurt by profit-taking on Wall Street, as the series L stock fell 0.63 percent to 12.72 pesos on the Mexican exchange.

Volume was 88.8 million shares in 3,087 trades.

Forty-five shares fell compared to 34 that rose.

Among the gainers were GMD B, which rose 6.25 percent or 1.0 peso to 17.0 pesos.

Among the losers was Segcoam B, which fell 3.95 percent or 10 centavos to 2.43 pesos.-Reuter