MEXICO CITY, March 12

Mexican stocks opened slightly down on Wednesday in a
market where dealing was smothered by economic and
political uncertainty, traders said.

"There's no paper, no one wants to trade," a Mexico City
floor trader said. "The Dow Jones is down, domestic primary
rates soared, and investors are on the sidelines awaiting
the decertification debate and the FOMC meeting," he added.

The leading IPC share index <.MXX> was down 11.63 points
in the opening minutes of trade, or 0.31 percent, at
3,792.49. Trading volume was a moribund 580,000 shares.

The Dow Jones was down 0.27 percent at 7,066.31 points.

Banco de Mexico placed bellwether 28day Cetes at 23.17
percent at its primary auction on Tuesday evening, a rise
of 201 basis points since last week. Money market traders
previously surveyed by Reuters had predicted an increase of
93 basis points.

The U.S. House of Representatives is expected to vote
Thursday on a bill to decertify Mexico's efforts in the
war on drugs.

The Federal Open Market Committee is to meet on March 25
to review U.S. interest rates. Other traders noted the
mediumterm impact of the Cetes auction was not adverse.

"Mediumterm and longterm rates were very stable, but
for now all eyes are on the 28day issue," a desk trader
said.

On the broad market, 23 stocks had traded, of which 18
were down and just one was up. Telecomms stock Telmex L
shares weighed most heavily among the decliners, off 14
centavos at 15.86 pesos, in parallel with a fall of 3/8 to
393/4 for its ADRs on Wall Street.

Retail stock Cifra was another prominent
slider, off 32 centavos at 11.06 pesos.

Traders said Cifra had fallen after a stock and cash
dividend.

Financial group GFB was also near the head of
the decliners' list, off seven centavos to 2.86 pesos.
Traders said financial groups in general had reacted
adversely to Cetes rate hikes, which were seen as
exacerbating banks' badloan problems. The sole gainer
<.PG.MX> was mining company Autlan , up 14
centavos to 3.44 pesos after a token 2,000 shares traded.
(( Martin Roberts, Mexico City newsroom +525 7287907))