Mexican stocks closed up 0.63 percent on Friday, buoyed by a positive corporate earnings outlook and purchases of Walmex shares on upbeat forecasts for retail sector performance.
The benchmark IPC stock index finished the session at 10,677.14 points, after ending flat in sideways trading on Thursday.
After an early rally, the peso lost 0.09 percent against the dollar to close at 11.2750, as fears of a rise in US interest rates lingered among traders despite assurances from the Federal Reserve that no hike was imminent.
"We are beginning the strongest period (first-quarter) for financial reports in Mexico, and there are good expectations of a move forward," said one stocks trader.
"From here until the end of the year, we expect the Mexican stock market to perform positively," said another.
Walmex, the market's third most heavily weighted share, added 1.79 percent to close at 35.84 pesos, after Merrill Lynch raised its holding to "overweight" from "underweight" as it re-jigged portfolios to reduce exposure to Brazilian equities.
Merrill said that Walmex stock - which has added 4 percent since posting a 33 percent rise in first-quarter net profit last week - was among shares that could benefit from a potential recovery in Mexican consumer spending later in the year.
No. 3 steel maker Hylsamex's shares, meanwhile, stretched a rally to a fourth session, adding 5.43 percent to a record 18.06 pesos, after raising its first-quarter forecast on Monday to $110 million, from a previous range of $70 million to $80 million.
Televisa, Mexico's No 1 broadcaster, clawed back losses it racked up in Thursday's session, adding 2.13 percent to 25.85 pesos in Mexico, while the company's ADR ticked up 2.36 percent to finish at $45.90 in New York.
Analysts said on Thursday they expected Mexican media stocks to post routine first-quarter results, before noting gains on the back of increased advertising in second-half 2004, generated by the Olympic games in the summer and November's US presidential elections.

Copyright Reuters, 2004

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