Mexican Stock Market Falls 3.7% in Biggest Dive of Year

The Mexican stock market took its biggest dive of the year Monday, clipped by a wave of selling by foreigners and new concerns about likely U.S. presidential candidate Ross Perot.

The Bolsa price index of the 40 most active stocks sank 67.34 points, or 3.7%, to close at 1,742.54--its lowest level since February.

Continued weakness in Telefonos de Mexico, the country’s phone monopoly, weighed heavily on the market, analysts said. Telmex shares trading on the New York Stock Exchange followed the Mexico City shares lower, losing $1.875 to $50 in active trading.

Telmex stock began to slide last week on rumors that the company’s workers’ union planned to sell its 3% stake in the firm. The rumors were denied. However, a union meeting was to have been held Monday to discuss the stake.

Traders said the market also was spooked by Perot’s continuing attacks on the proposed U.S.-Mexico free trade agreement. Though as yet an undeclared presidential candidate, traders said Perot’s high standing in opinion polls is worrying investors, who fear that Mexico’s economic boom could go bust without a free trade pact.