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EQUITY MARKET

Like 1999, the year 2000 was marked by considerable volatility.  In the first quarter, the equity market climbed steadily, reaching a record high of around 8,400 points. Within this movement, there were clear differences between "new economy" stocks (telecommunications, media and technology), which advanced at an extraordinary pace, and "old economy" stocks, which include retail, industrial and service companies.

The trend was led by the technology-heavy Nasdaq index, which has become the preponderant influence on the Mexican market.

Starting in the second quarter, however, investors began to see less justification for the high valuation of technology stocks and prices began to fall again toward the end of the year. In the second half of 2000, factors like presidential elections in Mexico and the U.S. and the slowdown of the U.S. economy made stock indices more volatile.

Interacciones was able to expand and strengthen equity trading activity over the Internet, through a system called I-Line. We also substantially improved the quality of our customer service and raised our market share to 2.39%, from 1.86% in the year before, ranking 14th in the market in terms of trading activity.

Trading by Interacciones expanded 53% in the year, compared to only 19% for the market as a whole.