Bargain Hunters Rescue Bolsa

Mexican stocks rebounded at the end of Wednesday’s chaotic session after disenchantment over the government’s economic rescue program pushed prices so low that investors jumped in to hunt for bargains.

Meanwhile, the peso slid against the dollar, reflecting the lack of confidence among many currency investors in President Ernesto Zedillo’s economic plan. In Mexico City, the peso lost 20 centavos and ended the day at 5.65 to the dollar.

The Bolsa index closed 8.6 points lower at 2,269.87. Trading carried on well after the official close at 3 p.m. local time.

Earlier in the day, the Bolsa plunged more than 130 points after a jump in interest rates compounded fears about Zedillo’s plan to rescue the economy.

Overshadowing the day was a sharp rise in Mexico’s bellwether 28-day Cetes rate, to 33%. The higher credit costs are expected to crimp company profits this year.