Mexico Stocks Fall for 2nd Day
Mexican stocks tumbled for the second day in a row Wednesday on fears that free trade talks with the United States may be put on hold.
The Bolsa price index fell 31.22 points, or 2.39%, to 1,273.24 points in what one analyst called panic selling, particularly among foreign investors.
The Bolsa has dropped steadily since Nov. 29, with its largest loss--42.6 points--on Tuesday.
“The chief cause is the possibility that the two presidents could announce a delay in the free-trade agreement. This has alarmed a lot of people,” said Pablo Castillo, an analyst at the Multivalores brokerage.
He said some Mexican analysts believed that the benefits of an early signing of the free-trade agreement would win through at the Camp David session, where President Bush is meeting with his Mexican counterpart, Carlos Salinas de Gortari.