Mexican Stocks End Lower, Peso Weakens After Yellen Comments

By Juan Montes

MEXICO CITY--Mexican stocks slipped Wednesday, while the peso weakened against the dollar, after U.S. Federal Reserve chairwoman Janet Yellen fueled expectations that interest rates would be raised next months.

The IPC index of leading issues closed down 1.3% at 41750 points on volume of 175 million shares worth 5.6 billion pesos ($337 million).

Among blue chips, wireless carrier America Movil fell 3% to 13.33 pesos while bread maker Bimbo dropped 0.7% to 47.25 pesos. Cement giant Cemex closed down 1.8% at 10.15 pesos.

For a second consecutive session, shares of Mexican builder ICA plummeted. The builder fell 22% to 3.2 pesos after it said Monday it will take a 30-day grace period on some interest payments.

On Wednesday, Ms. Yellen said the U.S. economy has recovered substantially, warning that waiting too long to normalize the monetary policy could be risky. The comments reaffirmed the belief that the Fed will raise interest rates in December.

Prospects of a Fed rate increase are making emerging-market currencies less attractive for investors, and the Mexican peso lost some ground against the U.S. on Wednesday.

The peso closed in Mexico City at 16.57 pesos, according to Infosel, compared with 16.5350 pesos at the close Tuesday.

Write to Juan Montes at [e-mail]

(END) Dow Jones Newswires

December 02, 2015 16:51 ET (21:51 GMT)

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