By: Anthony Harrup
MEXICO CITY--Mexico's stocks opened higher Monday in line with equities markets overseas, while the peso continued its recent positive run against the U.S. dollar.
The stock market's benchmark IPC index was up 0.2% at 41,071 points around 10:10 a.m. EDT, on volume of 18 million shares worth 485.7 million pesos ($37.2 million).
With the IPC near record levels in both nominal and dollar terms, upside potential is limited and the market remains vulnerable to renewed bouts of global volatility, Banco Santander said in a report.
The Mexican stock market has been one of the most defensive in the world, although the gains have also put it among the most expensive, Santander added.
Cement company Cemex (CEMEX.MX, CX) CPO shares were up 0.8% to MXN9.58, and retailer Wal-Mart de Mexico V shares were up 0.8% to MXN39.12. Brewer Modelo (GMODELO.MX, GPMCY) C shares were 0.9% lower at MXN118.51.
Mexico's peso continued to chalk up gains, after reaching its strongest close in three months following last Friday's better-than-expected U.S. payrolls report. The peso was trading in Mexico City at MXN13.0750 to the dollar, according to Infosel, compared with MXN13.1380 at the close Friday.
Banorte-Ixe said the peso's current level, given the vulnerability of emerging market currencies to global risk aversion, makes dollar positions attractive in the near term. The bank predicted a trading range of MXN13.00 to MXN13.45 for this week.