International Business

MEXICAN STOCKS * Mexican stocks fell to their lowest levels in more than three months after the peso weakened, interest rates rose and Telefonos de Mexico said fourth-quarter earnings could disappoint investors.

* Shares declined after the peso weakened 0.54% to 14.73 cents each and benchmark interest rates rose for the fifth week to 42.23%, their highest level since July, in the weekly Bank of Mexico auction of government debt securities. A weaker currency makes peso-dominated securities, such as equities, less valuable. Higher borrowing costs hurt earnings and the size of dividends paid to shareholders.

* Prices dropped because of “a confluence of factors,” said Tom Stires, senior vice president at Kleinwort, Benson Group. “But the main one seems to be that Telmex is not the sweetheart of Latin America telecommunications companies anymore.” Telmex told analysts that its recent earnings growth was due more to cost cutting than revenue growth.

Sources: Bloomberg Business News