Mexican financial markets were attentive on Tuesday to
news of renewed political violence in the southern state of Chiapas, though they were not visibly
shaken by it, analysts and traders said.
Stock watchers said they were personally saddened by reports that a paramilitary group had
attacked the indigenous community of Acteal in southern Mexico, killing 43 people. Still, moderate
weakness in the country's financial markets on Tuesday reflected purely financial factors, rather
than any heightened political concerns, most observers said.
''I don't think it is having a great impact. I think the market is waiting to see what happens,''
Hector Jimenez, research head at the Inverlat brokerage, told Reuters.
The IPC index of leading stocks was off 0.29 percent to 4917.46 points at midday largely as
share prices on Wall Street dipped.
Foreign exchange dealers said benchmark 48-hour peso contracts had slipped 2.3 centavos to
8.1260/8.1310 per dollar, in line with stock losses.
''If the situation gets worse, then I think it could have repercussions on the market, but it is not
right now,'' Jimenez said, referring to the renewed violence in Chiapas, where an outbreak of
guerrilla fighting in January 1994 killed 140 people, according to official figures.
The Mexican Red Cross told Reuters on Tuesday the organization had counted 45 dead, mostly
women and children, after Monday's attack on Acteal.
Reports said a paramilitary group attacked indigenous settlers in the remote mountain village while
they were celebrating mass.
You have to ask how can this happen?
The Mexican federal and state governments have so far issued no official information about the
incident.
To be sure, at least one stock trader detected a note of caution in the wake of the news.
''I don't think it's pushing the market down. They're certainly not dumping all over the place, but
some buyers are standing back,'' he said, referring to activity in the stock market. ''But then
volume is thin anyway because of the holiday season. Nothing much is really happening.''
A fixed-income securities analyst, who asked not to be named, said the markets were actually
indifferent to the reported massacre.
''The market is volatile because of sharp losses on Asian markets and a long weekend is coming. |
