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Mexican Uprising Helps Push Bolsa Down 100 Points

January 04, 1994|From Reuters

MEXICO CITY — Mexican stocks fell victim to political uncertainty Monday after an armed rebel uprising took place in southern Mexico, although analysts said the losses were partly linked to profit taking from recent gains.

The Bolsa index of 36 leading shares fell 100.4 points, a slide of 3.86%, to 2,502.23.

It was the biggest one-day percentage drop since Aug. 24, 1992, when the market tumbled 4.06%.

An estimated 600 peasants, who call themselves the Zapatista National Liberation Army and say they are fighting for indigenous rights, took over six cities in Chiapas on New Year's Day. So far, 86 people are known to be dead after bitter fighting Sunday and today with the Mexican army.

Analysts said investors viewed the event as an excuse to skim profits after huge gains in the run-up to Jan. 1, the date when the North American Free Trade Agreement took effect.

While few analysts saw the violence as a serious threat to NAFTA, some saw it as a cause for concern in Mexico.

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