The IPC stock index .MXX rose 2.42 percent to 21,729, also supported by big gains in normally lightly traded companies including a breadmaker and two holding companies owned by billionaire telecoms tycoon Carlos Slim.
Cell phone operator America Movil (AMXL.MX: Quote, Profile, Research)(AMX.N: Quote, Profile, Research), which is also controlled by Slim and accounts for around a fifth of the benchmark index's weighting, rose 1.79 percent to 20.42 pesos.
"The market was really divided this morning on whether we were going up or down, this could be a short-squeeze," said one trader in Mexico City.
On Tuesday stocks slumped in late-session wave of selling that traders said was caused by a large bank squaring a derivatives position. The bank's trade weighed heaviest on the IPC's less liquid stocks, which snapped back on Wednesday.
Slim's holding companies Carso Telecom (TELECOMA1.MX: Quote, Profile, Research) and Grupo Carso (GCARSOA1.MX: Quote, Profile, Research) both rebounded by more than 6 percent, while breadmaker Bimbo (BIMBOA.MX: Quote, Profile, Research) jumped back 3.68 percent to 62.02 pesos and appliance dealer Elektra (ELEKTRA.MX: Quote, Profile, Research) recovered 2.66 to 583.70 pesos.
The peso
The Mexican currency surged on Tuesday after the central bank held its first auction of credits funded by a swap line with the U.S. Federal Reserve, easing pressure on the exchange market for companies looking to cover short-term dollar debts. (Reporting by Michael O'Boyle, Editing by Walker Simon)
http://uk.reuters.com/article/marketsNewsUS/idUKN2253758120090422
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