Mexico peso sinks on Goldman jitters; stocks up

* Peso loses 0.82 pct as Goldman news spurs risk aversion

* IPC rises 0.39 pct on America Movil gains after earnings

* Supermarket chain Chedraui jumps almost 6 pct after IPO
(Adds comment, wraps in central bank dollar option)

MEXICO CITY, April 30 (BestGrowthStock) – Mexico’s peso weakened
sharply on Friday as reports of a federal probe against Goldman
Sachs Group stoked concerns of tighter U.S. financial and
curbed appetite for riskier assets.

News of a federal investigation of Goldman Sachs (GS.N: )
raised the possibility of criminal charges against the world’s
most powerful investment bank, less than two weeks after
Goldman was accused of civil fraud. For details see
[ID:nLDE63T021]

The probe coincides with debate in the U.S. Senate to
tighten bank and capital market oversight after the worst
financial crisis in generations. The case could reinforce
demands for regulations to force major banks to curtail trading
in risky assets. Such concerns made investors pull back on
emerging markets assets in anticipation of weaker flows into
such riskier assets.

“All this allows you to say ‘look at what is happening with
Goldman, there is a need for a greater regulatory framework,'”
said Cesar Wyncar, an analyst at brokerage BASE in Monterrey.

Mexico’s peso was on track to notch a 0.97 percent loss for
the week after concerns of a widening debt crisis in Europe hit
demand for riskier assets.

This week, Standard & Poor’s cut Greece’s debt rating to
junk amid negotiations between EU leaders to hammer out an aid
package for Athens. S&P also downgraded Spain and Portugal.

“As long as there is no concrete action to help Greece,
this volatility will continue,” Wyncar said.

The peso was still on track to mark its fourth straight
month of gains, firming 0.68 percent, helped by signs of
economic recovery in the closely-linked economies of the United
Mexico and the United States.

Mexico’s central bank on Friday sold $600 million in dollar
put options as part of a program begun in February to
accumulate foreign exchange reserves.

In stock trading, shares in America Movil (AMXL.MX: ) added
1.83 percent to 31.76 pesos after its earnings report released
after the market close on Thursday showed the company signed up
5.5 million new clients in the first quarter, more than the 4
million forecast in a Reuters poll of analysts.
[ID:nN29122529]

Shares in supermarket operator Chedraui (CHDRAUIB.MX: )
jumped 5.47 percent to 35.86 pesos in its market debut.

Chedraui’s initial public offering on Thursday ended a
nearly two-year drought of public listing on the Mexican
exchange. [ID:nN30237670]

Investment Tools

(Reporting by Michael O’Boyle, Editing by Andrew Hay)

Mexico peso sinks on Goldman jitters; stocks up