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Mexico shares jump on U.S. data, America Movil
MEXICO CITY, Feb 17 (Reuters) - Mexican stocks surged to new all-time highs on Tuesday, buoyed by strong U.S. industrial data and led by cellular phone operator America Movil. The IPC index, which comprises 35 of the most liquid Mexican companies, rose 1.30 percent to 10,135 points after setting a new life high at 10,149 points earlier in the session. Volume was 45 million shares traded. The peso currency (MEXO1) was trading marginally stronger at 10.934 to the dollar. America Movil, the most heavily-weighted stock in the local bourse, saw its shares rise 4.12 percent to 20.20 pesos while its New York-traded stock rose 2.85 percent to $36.80. "America Movil is pulling us up, the company has a good outlook," said one trader. "The U.S. (industrial output) data is confirming a recovery that will also help Mexico." Mexico's economy has been weak for the last three years but it showed signs of recovery in the fourth quarter, helped by the strong expansion in the United States, which buys around 90 percent of Mexican exports. The government is to release gross domestic product data for the fourth quarter and full year 2003 later on Tuesday. Analysts expect fourth-quarter GDP to come in at around 1.6 percent. The U.S. Federal Reserve said on Tuesday that output at U.S. factories, mines and utilities jumped in January as cold weather boosted natural gas and electricity demand. A recovery in the U.S. economy should mean greater demand for Mexican factory exports. America Movil, one of the most sought-after Latin American stocks around the world, was also benefitting from news U.S. cellular provider Cingular Wireless won an auction for AT&T Wireless Services Inc. with a $41 billion bid. Cingular will now become the largest U.S. wireless carrier with 46 million customers. America Movil has 43.7 million customers throughout Latin America. "We have a very strong market in light of America Movil's rise," said one trader. The company "is being revaluated, along with the wireless sector, because of the acquisition of AT&T Wireless." Telefonos de Mexico (Telmex), from which America Movil spun off, rose 0.72 percent to 19.54 pesos while its U.S.-traded shares advanced 1.28 percent to $35.65 Homebuilder Corporacion GEO, which is expected to release preliminary fourth-quarter results on Tuesday, was the top percentage gainer, up 4.37 percent at 76.50 pesos. Back to Original Article: News You Can Use
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