Bonds News

Mexico stocks rise as Grupo Mexico leads; peso dips

(Recasts; adds analyst comment, closing prices)

MEXICO CITY, April 14 (Reuters) - Mexican stocks ended higher on Tuesday despite Wall Street losses, led by a 6.4 percent jump in blue-chip copper miner Grupo Mexico, while the peso eased as traders took profits.

The IPC stock index .MXX edged up 0.36 percent to 21,918.60 points, recovering from steep early losses after a surprise fall in U.S. retail sales and a downgrade of index heavyweight America Movil by Citigroup.

The peso MXN=MEX01 weakened 0.35 percent to 13.159 per dollar following an 18 percent surge from a 16-year low hit in mid-March as investors took profits, traders said.

Grupo Mexico GMEXICOB.MX jumped 6.37 percent to 11.77 pesos, even as copper backed away from a new six-month high as investors cashed in on a rally that saw prices of the red metal climb more than 40 percent since March.

On Monday, Grupo Mexico offered $1.3 billion in cash in a preliminary offer to recover control of the bankrupt U.S. miner Asarco.

“Grupo Mexico is one of our top picks. There is a lot of value there ... once the legal matters are resolved,” said Francisco Suarez, head of analysis at Actinver brokerage in Mexico City.

Miner Autlan AUTLANB.MX surged 16.17 percent to 22.49 pesos.

Among losing shares, America Movil AMXL.MXAMX.N, Latin America's biggest cellphone operator, fell 1.96 percent to 20.54 pesos. Citigroup earlier cut America Movil's shares to "sell" from "hold."

Shares at top retailer Wal-Mart de Mexico WALMEXV.MX shed 3.12 percent to 36.96 ahead of the release of its first quarter earnings. After the market close, Walmex's posted a bigger-than-expected 6 percent rise in net first quarter profit.

Actinver’s Suarez also said the peso’s recent gains were boosting interest in Mexican shares. “With the peso’s strength, capital is pouring into Mexico looking for bargains,” he said.

In currency trading, traders said the peso could not maintain early gains to break past levels below 13.08 per dollar while U.S. markets were falling, so investors decided to take profits.

In debt trading, the government's benchmark 10-year peso bond MX10YT=RR lost 0.144 of a point in price, pushing its yield up 2 basis points to 7.53 percent.