Mexican shares rose on Thursday as ruling party candidate Felipe Calderon was officially declared winner in Mexico’s presidential election.Mexico’s main IPC index closed 2.7% up and the peso was 1.63% stronger, countering Wednesday’s 1.56% fall, when Mr Calderon’s opponent appeared ahead.

Shares were 533 points higher to reach 20,047.62 after a 4% drop on Wednesday.

Mr Calderon, who has business support, won by a mere 0.57%, said the Federal Electoral Institute.

‘Air of uncertainty’

Mr Calderon’s opponent, leftist candidate Andres Manuel Lopez Obrador, has vowed to challenge the result.

“The peso should remain firmer now that Calderon looks set to have his win confirmed,” said a report by banking firm HSBC on Thursday.

“But Lopez Obrador supporters may yet take to the streets and legal challenges will maintain an air of uncertainty, potentially limiting any rallies,” added the report.

Shares in America Movil were up 3.42% and the firm’s shares traded 4.8% higher in New York. Cement firm Cemex also gained, rising 1.5%.

Other Latin American stocks were also boosted by Thursday’s news. Brazil’s benchmark Ibovespa was 0.4% higher to 36,533 at closing after a high earlier in the day of 36,992.

Meanwhile Argentina’s Merval index climbed 0.83% to 1,714.4 points and the broader index added 0.82%.

Chile’s Ipsa index however closed 0.1% lower ahead of a pending monetary policy meeting.