Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, January 18, 1995 TAG: 9501190037
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE:
DATELINE: MEXICO CITY LENGTH: Short
The sale indicated that President Clinton's proposal of a U.S. loan guarantee for Mexico has bolstered confidence in the country as it grapples with a 33 percent devaluation of the peso in the past month.
The news boosted the peso, which opened at 5.43 to the dollar and closed at 5.28. The stock market index, which opened at 2243 points, rose to 2270 after the news of the bond sale, but fell back to close at 2209, off 1.5 percent, as investors took profits.
``Perhaps it's too early to ring the bells, but it is a good sign,'' said Francisco Blanco, director of analysis for the ARKA brokerage in Mexico City.
Blanco said the sale showed that foreign investors are ``a little more ready to participate in the market.''
There were $941.5 million in bids for the offering, showing stronger-than-expected interest.
At a similar auction last week, investers bought only $63 million of the $400 million in dollar-denominated bonds known as tesobonos, a disappointing show that contributed to a 12.5 percent two-day drop in the stock market.
- Associated Press
by CNB