Background on the Mexican Stock Market and Key Players
The Mexican stock market has been thriving, with both the Bolsa Mexicana de Valores (BMV) and the Bolsa Institucional de Valores (BIVA) closing September with returns exceeding 7%. This resilience is attributed to a weak Mexican peso and anticipation of lower interest rates. The market’s attractiveness has drawn international investors, making it an appealing destination for capital.
Key Market Performance in September
- On Tuesday, the S&P/BMV IPC, led by BMV, advanced 0.49% to 62,915.57 units.
- The FTSE-BIVA, managed by BIVA, gained 0.62% to reach 1,258.08 units.
- The S&P/BMV IPC touched a new high above 63,000 points but failed to sustain it.
- In September, the S&P/BMV IPC rose 7.17%, marking its best performance since April, when it gained 7.19%. The FTSE-BIVA had a monthly return of 7.03%, also its best result since April’s 7.51% advance.
- From July to September, the BMV’s advance was 9.51%, while BIVA climbed 8.53%.
With these results, the stock exchanges have accumulated gains of 27.07% for BMV and 25.21% for BIVA in the year.
The capitalization value increased by 595,274.38 million pesos, bringing the total to 8,628 billion pesos at the end of September, up from 8,032 billion pesos reported on the last day of August.
Expert Opinions and Market Factors
International Attractiveness:
Eduardo Ramos, an analyst from VT Markets, commented that the ninth month of the year confirmed a narrative of a resilient and attractive market for international investors, benefiting from the weak dollar environment and expectations of lower interest rates.
However, Ramos cautioned that investors should remain vigilant for potential volatile weeks due to external news (labor and political) and domestic risks that could reverse gains.
Analysts from Monex Casa de Bolsa noted that despite the significant disparity among issuers within the IPyC, the index has adopted a more optimistic stance due to expectations of progress in trade negotiations with the United States, further reinforcing global flow towards emerging markets.
Looking ahead, analysts consider it crucial to evaluate upcoming economic figures and trade negotiations between the United States and the rest of the world, particularly with China and Mexico.
Strong Performance in the Mining Sector
In September, the mining sector shone, driven by rising metal prices.
- Industrias Peñoles’ stocks surged 34.47% to 818.23 pesos.
- Grupo México, a copper producer, advanced 30.25% to 159.36 pesos.
- Genomma Lab, a pharmaceutical marketing company, experienced the largest decline at -14.08% to 19.22 pesos.
- José Cuervo, a tequila producer, followed with -11.16% to 19.42 pesos.
Experts from Monex added that additional factors, such as favorable growth expectations for the second half of the year, attractive valuations, opportune purchases, and advantageous economic factors compared to local counterparts, have contributed to the mining sector’s success.
