The Bolsa index gained 153.11 on Friday, or 0.6 percent, to a record 26,448.32. That put the gain for 2006 at 49 percent, the most in a year since 1999.

"The markets are anticipating some good news from Calderón in the new year," said Gerardo Roman, head trader at money manager Actinver SA, in an interview from Mexico City.

Mexico and other equity markets in Latin America led a rebound in emerging market stocks, which fell 25 percent between May and June on concern rising interest rates would quell economic growth. The Morgan Stanley Capital International index for emerging markets gained 29 percent this year, while the Latin American portion of the index rose 39 percent.

The Mexican economy, the region´s second largest, expanded at the fastest pace in six years in 2006 on rising exports to the United States and a credit boom that boosted domestic consumption.

The Finance Secretariat expects economic growth to slow to 3.6 percent in 2007 from an estimated 4.7 percent this year.

Calderón, 44, took office on Dec. 1 after winning the country´s closest election in July on promises to create more jobs by allowing private investment in energy and keeping inflation in check. Congress last week approved his proposal to have a balanced budget in 2007.

BOON TO COMPANIES

Tax code changes and new rules about investment in the energy sector would benefit Mexican companies, Roman said.

Shares of América Móvil SAB, Latin America´s largest mobile-phone company, rose 57 percent this year. The shares rose 60 percent or more in each of the three prior years, driven by the company´s 70 percent market share in Mexico and growth in markets such as Brazil and Colombia.

Speculation that América Móvil, Mexico´s largest company by market capitalization, will buy Telecom Italia´s Brazilian assets helped drive up the stock in recent weeks, Roman said. Telecom Italia has said it received unsolicited offers for the unit, and América Móvil, which is controlled by billionaire Carlos Slim, has said it would consider buying the business. The company hasn´t confirmed it made a bid.

The shares are also rising in anticipation of the merger of América Móvil with its holding company, América Telecom, Roman said. The combination, which could take place in February, will allow the company to buy back more shares or increase the dividend under Mexican tax rules, the companies said.

América Móvil SA rose for a fourth day Friday, gaining 14 centavos, or 0.6 percent, to 24.38 pesos. Moody´s Investors Service on Thursday assigned an A3 rating to the US$500 million floating-rate notes due in 2008 that the company sold on Dec. 27.

América Telecom SA rose 66 centavos, or 0.7 percent, to 97.91 pesos.

TV Azteca SA, Mexico´s second-largest broadcaster, rose 21 centavos, or 2.6 percent, to 8.22 pesos. The shares have gained for seven straight days.

Wal-Mart de México SA, Latin America´s largest retailer, rose 52 centavos, or 1.1 percent, to 47.56 pesos. JPMorgan Chase & Co. expects Walmex, as the retailer is known, to post in 2007 a 3.9 percent increase in sales at stores open for a year or more, according to a report published on Dec. 26. That would match an estimated 3.9 percent growth in same-store sales this year, according to JPMorgan.