Mexico peso off as dollar firms, stocks up

(Updates prices, adds quote)

MEXICO CITY Dec 21 (Reuters) - The Mexican peso took a hit on Monday as the dollar firmed broadly, while stocks fell as losses in retailer Wal-Mart de Mexico offset a gain Banorte bank.

The peso MEX01 lost 0.62 percent to 12.9160 after the U.S. currency touched six-week highs against the yen on expectations that U.S. economic growth will pick up steam in 2010.

"It's not Mexico. Everyone is moving into dollars," said one trader in Mexico City.

In stocks, the benchmark IPC index fell 0.11 percent to 31,799.23 points as leading retailer Walmex (WALMEXV.MX) fell 0.62 percent to 55.79 pesos. In recent sessions, Walmex has been giving up strong gains after setting an all-time high on Dec. 9.

Walmex's decline eclipsed gains in Banorte(GFNORTEO.MX), whose shares rose 3.07 percent to close at 45.66 pesos. The company said shortly after the closing bell on Monday that its pension fund Banorte-Generali was buying a portfolio of clients from smaller competitor Argos.

Banorte's acquisition of the portfolio is its second this year.

In the debt market, the benchmark 10-year peso MX10YT=RR traded nearly unchanged at 7.882 percent. (Reporting by Jean Luis Arce, Cyntia Barrera Diaz; Editing by Leslie Adler)