[March 12, 2013] DJ Mexico Stocks Edge Lower; Peso Gains With Help From S&P Tweet Mar 12, 2013 (Dow Jones Commodities News Select via Comtex) -- --America Movil downgraded by Credit Suisse, shares fall --Peso at strongest level against dollar in 18 months --S&P says it would upgrade Mexico if reforms succeed By Anthony Harrup MEXICO CITY--Mexico's stocks slipped Tuesday as heavyweight America Movil (AMX, AMX.MX) shares fell for a second consecutive session, and those of a smaller rival rose following the launch of a government proposal to increase competition and curb the power of dominant players in the telecommunications and television industries. The Mexican peso, meanwhile, had its strongest close against the U.S. dollar since September 2011 on continued momentum from the central bank's recent interest-rate cut and the decision by Standard & Poor's to change Mexico's credit rating outlook to positive from stable. The benchmark IPC stock index closed down 0.1% at 43965 points on volume of 359.1 million shares worth 8.09 billion pesos ($650 million). America Movil shares fell 2.4% to MXN12.83, a multi-year low, on investor concerns that proposed new telecommunications laws will rein in its dominant position in the domestic market, where it has 70% of mobile phone subscribers and more than 70% of the fixed phone lines. Credit Suisse downgraded America Movil to neutral from outperform. "We believe potential regulatory changes could be material and are difficult to quantify at this stage. These possible changes include: local loop unbundling, asymmetric tariffs, reduced legal recourse to regulatory actions, and in extreme cases asset divestitures," Credit Suisse said. Shares of Axtel (AXTEL.MX, AXTLY), a small fixed-line competitor to America Movil which recently recapitalized through a debt swap and the sale and leaseback of telecommunications towers, rose 6.1% to MXN3.63. The Ve Por Mas bank said that the proposed elimination of ownership limits on foreign investment in fixed-line telephony should be positive for Axtel. Televisa (TV, TLEVISA.MX), which has a 70% share of the broadcast television market, slipped 0.2% to MXN67.56. The peso was quoted closing in Mexico City at MXN12.4420 to the U.S. dollar, according to Infosel, compared with MXN12.5290 at the close Monday. The exchange rate moved as low as MXN12.4250 after S&P said it could upgrade Mexico's sovereign-credit rating within the next 18 months, citing the reform momentum under the administration of President Enrique Pena Nieto. The peso has been strengthening since last Friday, when the Bank of Mexico cut the overnight lending rate target to 4% from 4.5%, its first move in the rate since July 2009, which it said was meant to support economic growth amid a slowdown in external and domestic demand. Write to Anthony Harrup at [email protected] (END) Dow Jones Newswires 03-12-13 1729ET [ Back To TMCnet.com's Homepage ]