Mexican stocks finish 1.23 percent lower

Mexican stocks slumped on Friday following more than a week of gains, while the peso strengthened after the central bank held monetary policy steady at its twice-monthly meeting.
The IPC benchmark stock index dropped 1.23 percent, or 125.19 points, to finish at 10,028.42 points, giving ground after gaining for eight straight sessions.
The stock market "technically hit resistance around 10,100 or 10,200 points, and when it hit this level it began to drop significantly," said Juan Jose Resendiz, director of analysis at Arka brokerage in Mexico City.
In stock trading, silver mining company Penoles fell 10.20 percent to end at 40.32 pesos amid a dip in silver prices, erasing gains it made earlier in the week when precious metals prices rose.
Leading retailer Wal-Mart de Mexico (Walmex) fell 2.18 percent to 34.04 pesos after gaining for several sessions.
Elektra, which specialises in selling durable goods like televisions and washing machines to working class Mexicans, gave back 4.07 percent to 59.47 pesos. Its American Depositary Receipts (ADR) lost 2.01 percent to close at $20.99.
America Movil, one of Latin America's main cellphone operators, lost 1.91 percent to 20.02 pesos, and its ADR declined 1.93 percent to $35.05.
The IPC index has gained about 14 percent in 2004.
In its monetary policy review, the central bank said expectations for inflation in the medium term remained stuck above its 4 percent upper limit, and prices could be pulled higher by Mexico's economic recovery from a three-year slump.
Eleven out of 16 analysts and traders polled by Reuters had expected the central bank not to change its monetary policy.
The peso ended 0.22 percent stronger at 11.4100 per dollar after the central bank left monetary policy unchanged at its twice-monthly meeting earlier in the day.
"The monetary policy decision was already discounted," said one trader.
The decision was widely expected by financial markets due to a recent seasonal drop in prices and strength in the peso currency.
The Mexican currency picked up 1.47 percent for the week, improving after hitting an all-time low of 11.6890 per dollar earlier in the month.