Mexico Bolsa Index Falls for Second Day; Cemex, Vitro Decline

Sept. 25 (Bloomberg) -- Mexican stocks fell for a second day, led by America Movil SAB, on concern slowing U.S. growth and accelerating inflation in Mexico will hold back the local economy.

Mexico's Bolsa index dropped 248.68, or 0.8 percent, to 30,294.77. The Bovespa Index of the most-traded stocks on the Sao Paulo exchange rose 138.41, or 0.2 percent, to a record 58,857.78.

Reports today showed consumer confidence in the U.S. slumped to the lowest level in almost two years and home sales weakened in August. The U.S. buys 80 percent of Mexico's exports. Cemex SAB, North America's largest cement-maker, fell for a fifth session, declining 30 centavos, or 0.9 percent, to 31.45 pesos, the lowest in a year. Cemex gets one fourth of its sales from the U.S.

``Mexico would be the most affected in Latin America if there were a deceleration in the U.S.,'' said Rodolfo Navarrete, who helps manage $7 billion in equity and fixed income assets at Vector Casa de Bolsa in Mexico City.

Vitro SAB, Mexico's biggest glassmaker, declined 50 centavos, or 1.9 percent, to 26.20 pesos. Vitro gets more than half of its flat glass sales from the U.S., the company said in a May filing.

Signs of accelerating inflation in Mexico also hurt stocks, Navarrete said. Consumer prices rose more than expected in the first half of September on higher prices for tomatoes, milk and gasoline, the Mexican central bank said yesterday.

America Movil, the biggest mobile phone company in Latin America and the stock with the heaviest weighting in the Bolsa index, fell 49 centavos, or 1.4 percent, to 34.53 pesos.

Brazil's Bovespa index erased earlier losses and extended a record, led by TAM SA and Gol Linhas Aereas Inteligentes SA. The nation's biggest airlines were raised to ``neutral'' from ``underweight'' by JPMorgan. TAM rose 2.40 reais, or 5.1 percent, to 49.10 reais. Gol gained 2.71 reais, or 6.5 percent, to 44.70 reais.

In other Latin American markets, benchmark indexes in Chile and Venezuela fell and Colombia's gained, while those in Peru and Argentina were little changed. The Morgan Stanley Capital International index of Latin American shares fell 0.4 percent to 4,014.28.