Mexico's Stock Close Higher; Peso Weakens on Fed Concern

        By Anthony Harrup
        MEXICO CITY--Mexican stocks rose Tuesday, tracking gains in U.S. markets, while the peso lost ground against the dollar after a voting Federal Reserve official said he saw a 50-50 chance the Fed could start raising interest rates in September.
        The IPC index of leading issues rose 0.5% to 45,454 points on volume of 159.9 million shares worth 4.9 billion pesos ($318 million).
        Heavyweight America Movil (AMX, AMX.MX) L shares rose 0.6% to MXN16.52, and retailer Wal-Mart de Mexico (WMMVY, WALMEX.MX) shares closed up 0.5% at MXN39.13.
        Walmex said after the close that it completed the sale of its bank unit to Grupo Financiero Inbursa (GFINBUR.MX), the financial services company controlled by billionaire Carlos Slim, after the transaction was approved by regulators.
        Inbursa said it paid MXN3.6 billion for Banco Walmart, which has assets of MXN8.07 billion and a loan portfolio of MXN5.43 billion. Inbursa also has a commercial alliance with Walmex, the country's biggest retailer, through which it will seek to expand its retail banking operations. Inbursa shares closed down 0.5% at MXN35.71.
        Shares of pharmaceuticals and personal care products company Genomma Lab rose 4.8% to MXN17.40, adding to Monday's gains after it announced the sale of a majority stake in its distribution unit Marzam. Genomma plans to use the money to pay down debt and for share buybacks. Credit Suisse upgraded the stock to neutral from underperform.
        The peso was quoted closing in Mexico City at MXN15.4095 to the dollar, according to Infosel, compared with MXN15.3410 on Monday.
        The peso gave back some of its recent gains after Federal Reserve governor Jerome Powell, a voting member, said he saw a 50-50 chance that economic conditions will be ripe for the U.S. central bank to start raising interest rates in September, and that he expects it could then raise rates again in December.
        The official's comments came along with some positive economic data in the U.S., including a 2.2% rise in new home sales, which reached a seven-year high.
        "In coming days markets could start speculating about an imminent increase in the federal funds rate, particularly as the June nonfarm payrolls report approaches," Banco Base said in a note.
        Write to Anthony Harrup at anthony.harrup@wsj.com
        (END) Dow Jones Newswires

        June 23, 2015 17:10 ET (21:10 GMT)

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