Mexican Stock Market Hits Third Consecutive Closing High; Up 22.55% This Year

Overview of Mexican Stock Market Performance

The Mexican stock market concluded the trading session on Tuesday with minor gains, influenced by local inflation data that supported expectations for interest rate cuts by the Banxico.

Key Stock Market Indices

• S&P/BMV IPC: The leading index of the Bolsa Mexicana de Valores (BMV) increased by 0.05% to 60,583.02 units.
• FTSE BIVA: The index of the Bolsa Institucional de Valores (Biva) closed stable at 1,212.87.

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Mixed Performance Among Stocks

Within the reference index, stocks exhibited varied behaviors. Orbia Advance stood out with a 2.14% increase to 15.72 pesos, while Genomma Lab experienced the largest decline of 4.95% to 21.51 pesos.

Mexican Stock Market Trends

The Mexican stock market recorded its fourth consecutive advance and third record closing. In September alone, the S&P/BMV IPC has gained 3.36%, and year-to-date, the index is up 22.55%.

Inflation Data Influences Market

Local economic data showed an increase of 0.06% in inflation for August, aligning with expectations. At an annual rate, the inflation grew to 3.57%, surpassing June’s figure but still within the official target range of 3% ±1 percentage point.

Regarding underlying prices, the monthly inflation was 0.22%, exceeding expectations. The annual underlying inflation rate remained at 4.23%, confirming the challenges Mexico faces in slowing price increases.

Key Questions and Answers

• What is the Mexican stock market’s current performance? The Mexican stock market has experienced its fourth consecutive advance and third record closing. Year-to-date, the S&P/BMV IPC index is up 22.55%.
• What factors influenced the recent market gains? Local inflation data, which showed a 0.06% increase in August and an annual rate of 3.57%, supported expectations for interest rate cuts by Banxico, driving the market gains.
• What are the current inflation challenges in Mexico? Despite being within the official target range, annual underlying inflation remains at 4.23%, indicating ongoing difficulties in slowing price increases.