Introduction
The Mexican stock market has experienced a three-day winning streak, reaching unprecedented levels. This progress comes as investors process the recent monetary policy decision by the Federal Reserve and the latest batch of quarterly reports from local companies.
Market Performance
The S&P/BMV IPC, Mexico’s primary stock market index, rose by 0.89%, trading at 63,352.85 points. Meanwhile, the FTSE-BIVA, representing Mexico’s Institutional Securities Market, increased by 0.83% to reach 1,260.28 units.
Year-to-date, the IPC has gained 27.95%, and the FTSE-BIVA has seen a 25.43% increase.
Top Performers and Laggards
Orbia, a conglomerate, led the gainers with a 7.37% increase to 17.91 pesos, followed by Grupo México, a mining company, which added 6.19% to reach 165.65 pesos.
On the downside, tequila giant Becle topped the decliners, falling 2.37% to 23.02 pesos. Banco Regional’s stocks also experienced a 2.34% drop to 137.90 pesos.
Outside the index, Volaris, a major Mexican airline, suffered a 4.69% decline to 11.99 pesos after the United States announced the revocation of approval for 13 routes operated by Mexican airlines to U.S. territory and the cancellation of combined passenger and cargo flights.
Investor Reactions to Key Events
Investors absorbed the Federal Reserve’s decision to cut interest rates by 25 basis points, placing the rate within the range of 3.75-4.00%, as market expectations had anticipated.
During his post-decision press conference, Fed Chair Jerome Powell stated that another interest rate cut in the final 2025 meeting is not a foregone conclusion. He emphasized the diverse opinions within the committee regarding December’s proceedings.
Powell’s Statement
“During our committee discussions this meeting, there were very divergent views on how to proceed in December,” Powell said during his customary post-decision press conference.
“Another interest rate cut in that meeting is not an inevitable conclusion, nor even close.”
Key Questions and Answers
- What is the current status of the Mexican stock market? The Mexican stock market has reached all-time highs, with the S&P/BMV IPC and FTSE-BIVA indices experiencing significant gains over the past few days.
- Which companies have performed well recently? Orbia and Grupo México are among the top performers, with stock price increases of 7.37% and 6.19%, respectively.
- Which companies have experienced declines? Becle and Banco Regional are among the laggards, with stock price drops of 2.37% and 2.34%, respectively.
- What factors influenced investor decisions recently? The Federal Reserve’s interest rate cut and the U.S. decision to revoke approval for Mexican airline routes have impacted investor behavior.
- What did Fed Chair Jerome Powell say about future interest rate cuts? Powell indicated that another interest rate cut in the final 2025 meeting is not a foregone conclusion, emphasizing diverse opinions within the committee.
