IPC index gains as Movil advances

In Mexico on Tuesday the IPC index gained 0.89 percent to 14,727 in morning trading as cellphone company America Movil was up 1.02 percent to 11.93 pesos. Its American Depository Receipt added 1.22 percent to $22.37. America Movil’s advance was primarily due to the move by Morgan Stanley to raise the company’s price target on US-traded shares from $22.50 to $28 per share.

The rise came after American Movil reported quarterly results that were much stronger than expected. Meanwhile, shares in construction company ICA gained 1.98 percent to 4.63 pesos, while its American Depository Receipt rose 2.78 percent to $2.59. ICA is expected to set a price for the sale of $230 million in new shares after the close of trade on Tuesday.

The new shares will be for sale to both local and foreign investors. The Mexican peso held relatively steady at 10.63 pesos to the dollar as investors waited for the release of June’s consumer price figures and as expectations grow that the central bank will begin easing monetary controls in September. The expectation of a rise in interest rates in the US also influenced Mexican markets.

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