Mexico stocks rise one-year high
Thursday, 10 September 2009
MEXICO CITY, Sept 9 (Bloomberg): The Bolsa index rose to the highest level since July 2008.
Investors are buying stocks that have fallen since last month after regulators relieved Mexico's private pension funds, known as Afores, from having to buy shares of companies that rarely trade, according to Sergio Zermeno, the head of Santander's trading desk in Mexico City.
"Companies with good capitalisation but not much liquidity had fallen as much as 20 per cent," he said. "Easing around the world has created excess liquidity, so investors are picking up shares rather cheaply."
Axtel SAB, Mexico's second-largest fixed-line phone operator, climbed 3.6 per cent after a person familiar with the deal says it plans to sell 10-year dollar bonds in overseas markets to repay debt, including global notes due in 2013.
Investors are buying stocks that have fallen since last month after regulators relieved Mexico's private pension funds, known as Afores, from having to buy shares of companies that rarely trade, according to Sergio Zermeno, the head of Santander's trading desk in Mexico City.
"Companies with good capitalisation but not much liquidity had fallen as much as 20 per cent," he said. "Easing around the world has created excess liquidity, so investors are picking up shares rather cheaply."
Axtel SAB, Mexico's second-largest fixed-line phone operator, climbed 3.6 per cent after a person familiar with the deal says it plans to sell 10-year dollar bonds in overseas markets to repay debt, including global notes due in 2013.