International Business : Global Markets and Economic Update : MEXICAN STOCKS

Mexican stocks closed lower for the third straight session in light volume amid a sharp drop by Telefonos de Mexico, or Telmex.

Traders said Telmex was bruised by a report in the Wall Street Journal saying that government officials are deciding against charging a licensing fee for new entrants to the country’s emerging telephone industry. Telmex’s monopoly expires at the end of 1996.

One of Mexico’s fastest-growing cellular telephone companies, Iusacell, saw its New York-traded shares rise 3% to $12.25 after the company said it would seek to raise its rates later this year.

The Bolsa Index: Wednesday closes

April, 1995: 1,829.95

Sources: Dow Jones; Bloomberg Business News

SPOTLIGHT: PANAMA

The economy has revived since the overthrow of Gen. Manuel Noriega in 1989 and the subsequent lifting of U.S.-imposed sanctions. Capital has returned to the banking system and the deficit and unemployment have declined. But the country’s financial future--in terms of employment and income--remains uncertain.

Sources: Bank of America, World Information Services.