Overview of Recent Market Performance
The Mexican stock market concluded the week on a positive note, marking its second consecutive week of gains and reaching new historical highs. Investors are closely watching the upcoming Reserve Fed (Fed) meeting, where interest rate cuts are anticipated to begin.
BMV IPC Index Hits Record High
The S&P/BMV IPC index of the Mexican Stock Exchange (BMV) increased by 0.40% and closed at an all-time high of 61,798.94 units, marking its ninth historical maximum so far in 2023. During the session, the IPC reached an intraday high of 61,941.99 units, coming closest to the 62,000 points milestone.
FTSE BIVA Index Also Rises
The FTSE BIVA index of the Mexican Institutional Securities Exchange (BIVA) gained 0.43% to 1,235.75 points. In intraday trading, it hit a new historical high of 1,238.17 points.
Both stock market indices have seen more than a 2% increase over the week.
Key Stock Movers
Televisa, a media and telecommunications company, led the gains with a 3.15% increase to 10.49 pesos per share. The tequila producer Becle and food company Alfa (2.57%) followed closely behind.
Genomma Lab (-3.71% to 20.48 pesos per unit), Volaris (-2.34%), and Peñoles (-1.58%) were among the stocks that showed the most decline during the day.
Global Market Mixed Performance and Local Tensions
According to Monex analysts, “Worldwide equity markets present mixed movements following the release of various U.S. economic data in the previous session.”
After inflation and unemployment data were published, expectations strengthened that the Reserve Fed would apply its first interest rate cut. Markets now consider this decision a foregone conclusion, and attention shifts to how many additional rate cuts the Fed will implement by the end of 2023.
On the local front, tensions with China escalated following Mexico’s announcement of new tariffs. Beijing labeled them as “coercion,” and Chinese businesspeople urged their reconsideration.
Key Questions and Answers
- What is the main topic of this article? The Mexican stock market’s recent performance, with both the BMV IPC and FTSE BIVA indices reaching new highs.
- Who are the key players mentioned in this article? The Mexican Stock Exchange (BMV), Bolsa Institucional de Valores (BIVA), Televisa, Becle, Alfa, Genomma Lab, Volaris, and Peñoles.
- What are the reasons behind the market’s positive performance? Anticipation of interest rate cuts by the Reserve Fed and strong corporate earnings.
- What are the key stock movers in this article? Televisa, Becle, and Alfa led gainers, while Genomma Lab, Volaris, and Peñoles showed the most decline.
- What are the global and local factors influencing market performance? Mixed global equity market movements following U.S. economic data release and escalating tensions with China over new tariffs.
