World Travel News

Mexico’s benchmark stock index rose for a second day, led by America Movil SA, Latin America’s biggest cell-phone company, on the prospect that lower interest rates will spur economic growth.

The Bolsa index rose 254.34, or 1.8 percent, to 14,497.53 as of 1:15 p.m. New York time, Elsewhere in the region, Brazil’s Bovespa rose 137.50, or 0.5 percent, to 28,182.33.

The Bank of Mexico last week allowed overnight interest rates to decline 0.25 percentage point, and investors expect rates to fall further and generate growth, said Niall Paul, who helps manage $2 billion in emerging market stocks for Morley Asset Management in London, including about $140 million in Mexican equities.

“It’s signaling that monetary policy is easing and it’s cheaper financing for companies and consumers,'’ Paul said in a telephone interview. “That generally leads to growth.'’

Companies showed strong earnings growth in the second quarter even as the economy slowed from a year earlier, Paul said. Mexican economy expanded a less-than-expected 3.1 percent in the second quarter, a seasonally adjusted decline of 0.42 percent, as U.S. demand for Mexican exports waned.

“As long as companies are producing good reports then the market is well underpinned,'’ he said.

Brazil’s Bovespa rose for a fourth day, the longest gain since the four-day period ending on July 14, led by Brasil Telecom SA.

“Brazil’s economic fundamentals are doing well,'’ said Rodrigo Campos, a partner at Quantix Investimentos in Sao Paulo, which manages about 22 million reais ($9.33 million) in shares and bonds.

Shares rose even after lawmakers overrode President Luiz Inacio Lula da Silva’s veto of a 15 percent wage increase for congressional workers. The wage increase will cost the government 577 million reais, adding to its budget gap.

“The market is giving the benefit of the doubt that this will be reversed,'’ Campos said.

In other Latin American markets, Venezuela’s stock index rose 2.8 percent, the biggest one-day gain since Sept. 9, 2004. The main indexes in Argentina, Peru and Colombia also rose, while the Chilean index fell. Morgan Stanley’s index of Latin American stocks rose 1.2 percent to 1834.78.

The following stocks are making significant gains or losses in Latin American markets today. Symbols are in parentheses after the company name. In Brazil, the preferred share is usually the company’s most-traded class of stock.

Mexico

America Movil (AMXL MM) rose 36 centavos, or 3.1 percent, to 12.17 pesos. In the year, America Movil shares are up 25 percent, outperforming the Bolsa’s 12 percent increase.

Industrial Penoles SA (PE&OLES* MM), Mexico’s largest silver producer, rose for a second day, climbing 1.38 pesos, or 3.3 percent, to 43.35 pesos. Silver for December delivery trading in New York rose to a seven-day high of $7.050 per ounce, from $6.855 an ounce yesterday.

Grupo Financiero Inbursa SA (GFINBURO MM), the Mexican bank controlled by billionaire Carlos Slim, rose 70 centavos, or 3.2 percent, to 22.95 pesos. Further rate cuts by the central bank would spur loan demand. On Aug. 23 Grupo Gigante SA, Mexico’s fourth- largest retail chain, obtained a 10-year loan for 2.7 billion pesos ($250 million) from Inbursa.

Cemex SA (CEMEXCP), the world’s third-largest cement maker, rose 1.87 pesos, or 3.7 percent, to 53.15 pesos. The stock has climbed 31 percent since the beginning of the year, making it the third-best performer in the Bolsa index. Cemex reduced debt by more than $800 million since it bought U.K.-based RMC Group Plc for $5.8 billion at the end of March, easing investor concern over its debt