Mexican stocks that trade on U.S. markets edged lower on Friday after that country's central bank raised interest rates to combat inflation.
The Bank of New York Mexico ADR Index lost 3.77 points, or 1 percent, to 377.06. ADRs, or American Depositary Receipts, are securities designed to allow U.S. investors to trade shares of companies based overseas.
The bank said Friday it is raising its key interest rate 25 basis points to 7.75 from 7.5 percent. The announcement is the first time the bank has raised rates since October.
Earlier Friday, the bank said the country's annual inflation rate rose to 4.95 percent May, the biggest jump in more than three years. Food and oil led the price hikes.
The biggest ADR decliner was drink producer Fomento Economico Mexicano SAB de CV, which gave up $1.32, or 3.1 percent, to $41.67. Airport operator Grupo Aeroportuario del Centro fell 50 cents, or 2.7 percent, to $18.12. Grain producer Gruma SAB de CV gave up 24 cents, or 2.2 percent, to $10.74.
Glass maker Vitro SAB de CV lost 9 cents to $5.15. Television broadcaster Grupo Televisa SA slipped 45 cents to $23.17. Homex Development Corp., a homebuilder, shed $1.08 to $61.60. Maxcom Telecomunicaciones SAB de CV lost 16 cents to $13.
The broader ADR market gave up ground on Friday. The Bank of New York Latin America ADR Index lost 8.98 points, or 1.9 percent, to 454.53.
The Bank of New York Composite ADR Index lost 3.54, or 2.1 percent, to 168.58 as U.S. markets declined.
Terms & Conditions
RSS Headlines
Fool UK