(Clarifies deficit is accumulated in final paragraph)
MEXICO CITY Nov 25 Foreign investor inflows to
Mexican stocks and bonds picked up in the third quarter as the
Federal Reserve kept its monetary stimulus program unchanged, a
Mexican central bank report said on Monday.
Foreign portfolio investment in Mexican stocks as well as
corporate and government debt nearly doubled to just over $16
billion in the July to September period, the central bank said
in a statement.
Net investments in Mexican stocks and corporate debt rose to
$3.669 billion after market players had pulled out nearly a net
$5 billion in the second quarter. Investments into
peso-denominated government debt also rose.
Emerging markets around the world had suffered this year
amid bets the U.S. Federal Reserve would cut back its
bond-buying program this year. The Fed's monetary stimulus has
supported demand for riskier assets.
But investors piled back into Latin America's second-biggest
economy during the third quarter as expectations after the Fed
surprised investors and did not cut back its bond-buying program
aimed at keeping interest rates low in the United States.
Meanwhile, investment by foreigners in Mexican factories and
businesses fell to $3.389 billion, down sharply from the second
quarter when foreign direct investment (FDI) reached more than
$18 billion due to beer giant Anheuser-Busch InBev's
acquisition of Grupo Modelo.
FDI was also down by about one-third from the third quarter
The country's current account deficit was
$5.457 billion in the third quarter, widening slightly from the
second quarter. The accumulated deficit for the
first nine months of the year was the equivalent of 1.7 percent
of gross domestic product.
(Reporting by Michael O'Boyle, Editing by W Simon)