BMV Overview and Recent Performance
The Mexican Stock Exchange (BMV) has experienced its second consecutive week of gains, reaching its highest level since April 2024. The S&P/BMV IPC, which tracks the most traded local securities, rose by 0.55% to 57,959.72 units on Friday, marking its best close since April 8, 2023, when it was at 57,989.94 units.
The FTSE-BIVA, the primary index of the Mexican Securities Market (Biva), also increased by 0.16% to a level of 1,170.59 points.
In weekly comparisons, the S&P/BMV IPC advanced by 2.54%, and the FTSE-BIVA rose by 2.41%. Both indices have shown gains for two consecutive weeks.
On an annual basis, the S&P/BMV IPC has seen a 17.11% increase, while Biva has experienced a 16.50% rise.
Factors Driving BMV’s Uptick
The recent surge in the BMV index was supported by global optimism, following a trade truce between the United States and China earlier in the week. Tensions between these two nations had previously driven market volatility.
Since early April, when the BMV touched near 50,000 units, gains have been fueled by the reduction in US-China trade tensions. An agreement was reached to lower tariffs on Chinese products to 30% and US products to 10%.
Furthermore, the United States’ technology-related agreement with Saudi Arabia, focusing on semiconductors and potential investments of up to $243 billion from the Middle East region for chip imports, has also contributed to the BMV’s growth.
Analyst Insights and Predictions
Georgina Muñiz, Technical Analysis Manager at Vector Casa de Bolsa, noted that the S&P/BMV IPC attempted to surpass 58,000 units but failed to do so by Friday’s close. Muñiz suggested that this, combined with overbought indicators and insufficient volume growth, indicates a ceiling validation.
If profit-taking occurs and the index breaks below 57,300 points, it could drop to 55,800 points. However, if the index remains above 58,000, it could extend its rise to 59,000 points, though a subsequent correction remains possible.
Banamex analysts pointed out that, despite overbought metrics limiting short-term growth potential, the BMV might still reach 59,000 points—close to its historical highs—at a 1.5% increase from current levels.
Looking at the long term, if the BMV maintains its current trend, it could advance towards 62,000 points. Analysts recommend waiting for pauses in individual components or index-linked positions before taking action in the BMV.
Wall Street’s Performance
All three major indices on Wall Street—the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite—experienced their second consecutive week of gains, driven by the US-China trade truce earlier in the previous week.
The Dow Jones Industrial Average, comprising 30 major company stocks, increased by 0.78% to 42,654.74 units on Friday. The S&P 500, which includes the most valuable companies listed on the New York Stock Exchange, rose by 0.70% to 5,958.38 points.
The Nasdaq Composite gained 0.52% to 19,211.10 points.
Weekly comparisons show that the Dow Jones improved by 3.41%, the S&P 500 climbed 7.15%, and the Nasdaq Composite gained 5.27%.
Analysts from Banorte stated that hopes for a cooling of President Trump’s trade war continue to drive the stock market, with the S&P 500 recording its second-best week of the year. However, uncertainty persists regarding tariffs’ impact on the global economy, reflected in further consumer confidence weakness.
Key Questions and Answers
- What is the BMV? The Bolsa Mexicana de Valores (BMV) is the Mexican Stock Exchange, where local securities are traded.
- Why did the BMV experience gains? The BMV’s rise was fueled by reduced US-China trade tensions and a technology agreement between the United States and Saudi Arabia.
- What do analysts predict for the BMV’s future? Analysts suggest that, if current trends continue, the BMV could reach 62,000 points in the long term.
- How did Wall Street perform during this period? All three major indices on Wall Street—Dow Jones, S&P 500, and Nasdaq Composite—experienced their second consecutive week of gains.
