Mexican stocks drop

Mexican stocks ended down on Friday, dragged lower by telecom and retail stocks as the peso retreated against the peso after the central bank held monetary policy steady. The IPC benchmark stock index lost 0.81 percent to close at 12,347.72 points while the peso pared earlier losses to close down 0.23 percent to 11.0150 per dollar. Mexico's central bank kept monetary policy unchanged after core inflation moved lower in April, easing fears that consumer prices may again be rising too high. "After the central bank announcement, the peso ticked up but was not a long-lasting effect and then trading went back to 11.04 per dollar levels," said one trader.
Consumer prices rose 0.36 percent in April, higher than market expectations of 0.25 percent. But core inflation, which strips out volatile energy and food prices, was 0.21 percent.
The bank has tightened monetary policy 12 times since February 2004 but has been unable to drag inflation inside its target range.
In stock trading, cellphone operator America Movil reversed early gains to close down 1.10 percent at 28.68 pesos and its New York-traded stock slipped 1.68 percent to $52.05.
The company, owned by Latin America's richest man Carlos Slim, decided on Thursday not to bid for a frequency in Spain but said it is still interested in the home market of its rival Telefonica.
Retailer Wal-Mart de Mexico (Walmex) closed down 1.51 percent at 39.12 pesos. The company reported on Monday that same-store sales rose 4.1 percent in April in real terms, compared with the same month last year.
Walmex is majority owned by US retailer Wal-Mart Stores Inc It has 700 stores and restaurants across the country. Bellwether Telefonos de Mexico inched up 0.16 percent to 18.73 pesos while its New York-traded stock fell 0.32 percent to $33.92.
Entertainment company CIE finished as the session's top percentage gainer, up 3.12 percent to 22.79 pesos per share.
The company said on Thursday it wants to buy a 25 percent stake in its CIE Las Americas horse track unit that local financial group Inbursa holds, in a deal worth about $90 million.