Mexico's Stocks Open Higher Peso Loses Ground Against Dollar

Mexico's Stocks Open Higher; Peso Loses Ground Against Dollar

By Anthony Harrup

Of DOW JONES NEWSWIRES

MEXICO CITY (Dow Jones)--Mexico's stocks opened higher Friday as investors remained optimistic about company earnings.

The market's IPC index of leading issues was up 0.4% to 30,898.52 points around 10:30 a.m. EDT. Volume was 44.2 million shares worth 1.32 billion pesos ($102 million).

A Mexico City trader said the market remains volatile, with relatively strong earnings reports lending support despite lingering doubts about the economic recovery.

U.S. stocks started to react positively to better-than-expected U.S. existing home sales for September, but quickly turned lower again as industrials receded from the previous day's rally. The Dow Jones Industrial Average was off 0.5%.

A number of Mexican companies have reported solid third quarters. Bakeries concern Bimbo (BIMBO.MX) said its net profit rose 25% from a year ago, helped by a major acquisition in the U.S. and growth in Latin American sales. Mexican sales fell marginally. Bimbo A shares were up 2% to MXN81.56.

Media conglomerate Televisa (TV, TLEVISA.MX) CPO shares were up 0.1% to MXN52.50. Televisa's net profit in the quarter slipped 2.6% and came in slightly below estimates, although sales rose a more-than-expected 5.5%.

The peso was weaker against the dollar as the U.S. currency gained against major rivals. The peso was quoted in Mexico City at MXN12.9640 to the dollar, compared with MXN12.8920 Thursday.

Focus is likely to turn again to the 2010 budget debates. A group of opposition senators said Thursday they are seriously considering sending the 2010 income bill back to the lower house with changes.

The Ixe brokerage said the budget discussions could push the peso back above MXN13, given concerns about the possibility of a sovereign credit ratings downgrade.

-By Anthony Harrup, Dow Jones Newswires; (5255) 5001 5727, anthony.harrup@dowjones.com

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