Economic Optimism Sends Mexico Stocks to New High
Mexican stocks soared Friday to an all-time closing high on growing optimism about the country’s economic future.
The key index of the Mexican stock market soared 130.84 points, or 4.3%, during the day to close at 3,174.85 points. At the end of 1995, the key index stood at 2,778.47.
Volume totaled a hefty 1.9 billion pesos on 140.3 million shares.
“I think this is the beginning of a rally of quite significant proportions, and the market should capitalize on that on Monday and Tuesday,” said Luis Phillips, Mexico equity strategist for Paribas Capital Markets in New York.
The previous record closing high was set April 1, when the index hit 3,113.27 points.
Analysts said that a speech Thursday night by Treasury Secretary Guillermo Ortiz Martinez, in which he predicted April’s inflation would be less than 3% on a monthly basis, set the mood for the market’s rally.
Ortiz also said that the country’s first-quarter gross domestic product decline on an annual basis might be less than the 3% originally predicted.
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