[VZ will *not* be selling its stake in CEL.]
Tuesday September 26, 12:24 pm Eastern Time
Mexico stocks mixed, backed by Telmex, Iusacell news
(UPDATE: Updates with early trading)
MEXICO CITY, Sept 26 (Reuters) - Mexican stocks were narrowly
mixed in morning trading on Tuesday, supported by news that
market heavyweight Telmex and two other firms were forming a
South American venture and by a sharp rise in the share price
of cellphone company Iusacell.
The IPC index (^MXX - news) of leading stocks rose about
seven points to 6540, easing from an initial high of 6597.
But on the broad market declining issues led gains 21 to 15
out of a total of 47 trading. Volume was a thin 24.6 million
shares.
Traders said early trading was buttressed by news Bell Canada
International(Toronto:BI.TO - news), SBC Communications
(NYSE:SBC - news) and Telefonos de Mexico (NYSE:TMX - news)
had finalised an agreement to form a cable and telephone
company in South America.
Telmex, which accounts for almost 30 percent of the IPC, was
up 0.2 pesos, or 0.8 percent, at 25.70 pesos ($2.73). Its
ADRs rose 9/16, or 1 percent, to $54-5/8 in U.S. trading.
Separately, Telmex shareholders Monday approved splitting off
the company's wireless and international operations.
In other active issues, cellular telephone company Iusacell
jumped 0.98 pesos, or 8.8 percent, to 12.00 pesos. Trader
cited a report in the El Financiero daily that Bell Atlantic
Corp. was not considering selling its stake in the Mexican
company, contrary to earlier market rumours. Verizon
Communications (NYSE:VZ - news), formed from the recent
merger of Bell Atlantic and GTE Corp., holds some 37 percent
of Iusacell.
Iusacell's ADRS (NYSE:CEL - news) gained 1 percent to $12-7/8.
Some retail stocks posted gains Tuesday. The National
Association of Supermarkets and Department Stores (Antad)
said on Monday the total sales of its members in August rose
by 5.5 percent, compared with the same month last year,
indicating a still-strong retail environment in Mexico.
Among retailers, Liverpool rose 3.57 percent to 14.50 pesos
and Walmex was up 0.48 percent to 21.10 pesos.
Mexico's benchmark 48-hour peso contracts strengthened 1.3
centavos to 9.406/9.409 to the dollar in early trading. Rates
on overnight Cetes, or T-bills, , dipped 65 basis points to
15.35 percent. |
