Mexico's Stocks Open Lower, Tracking US; Peso Firms

MEXICO CITY -- Mexican stocks opened lower Tuesday, following moves in U.S. markets in light activity ahead of a local holiday.

The market's IPC index of leading issues was down 0.2% to 29,325.77 points around 10:10 a.m. EDT. Volume was 24.5 million shares worth 737.4 million pesos ($55.2 million).

The peso was slightly stronger against the dollar, quoted in Mexico City at MXN13.3625 compared with MXN13.3760 at the close Monday.

A Mexico City equities trader said volume was low ahead of Wednesday's Independence Day holiday.

The Industrials were off 0.3%, after making short-lived opening gains on better-than-expected retail sales for August. The Commerce Department said retail sales rose 2.7% last month, compared with expectations of 2%.

IPC heavyweight America Movil (AMX) L shares were down 0.9% to MXN30.74, and cement company Cemex (CX) CPO shares were off 0.8% to MXN16.65.

Retailer Wal-Mart de Mexico (WMMVY), or Walmex V shares were down 0.9% to MXN48.20, adding to Monday's losses. Investors have been taking profits on Walmex, which has outpaced its competitors in the current recession.

The retail association Antad reported Monday a 1.5% increase in August same-store sales, including Walmex which had reported a 5.6% rise.

"The Antad numbers confirm that Walmex continues to gain market share from its competitors," Citigroup unit Banamex said in a report. "Our perception is that the economy in Mexico continues in recession, but apparently the worst is over as year-on-year comparisons become less demanding."