Background on the Mexican Economy and Relevant Figures
The Mexican economy, like many others, is influenced by various factors including employment rates and stock market performance. Mexico’s central figure in this discussion is the Mexican Peso (MXN) and its fluctuations against the US Dollar (USD). The Bolsa Mexicana de Valores (BMV) also plays a crucial role, as it reflects the country’s stock market health.
Key Economic Indicators
- US Unemployment Benefits: The week ending December 20, 2020, saw a decrease of 10,000 in jobless claims, reaching an adjusted figure of 214,000. Economists had anticipated a number closer to 224,000.
- Mexican Unemployment Rate: The seasonally adjusted unemployment rate in Mexico rose to 2.7% in November from 2.6% in October, according to data from the National Institute of Statistics and Geography (INEGI).
Mexican Peso Performance and BMV Highlights
On this mid-week trading day, the Mexican Peso weakened against the USD, reaching levels not seen since July of the previous year. This occurred in a session with reduced liquidity, just before Christmas.
Mexican Peso Exchange Rate
By midday, the Mexican Peso was trading at approximately 17.9319 pesos per USD, marking a 0.21% decline. However, it remained below the critical threshold of 18 pesos per USD.
BMV Reaches New Heights
The Mexican stock market, represented by the S&P/BMV IPC index, hit new all-time closing highs, reaching 65,616.43 points—a 0.03% increase. During the day, the index soared to an intraday peak of 65,722.96 points.
Low Trading Volume
The day’s trading volume was exceptionally low, with only 16.4 million shares exchanged—significantly below the average of around 200 million shares in recent months.
Top Performing Stocks
- El Puerto de Liverpool: Shares of the department store chain surged by 2.66% to 103.43 pesos.
- Alsea: Stocks of the restaurant operator rose by 1.75% to 55.77 pesos.
Ollinani’s Performance
Outside the S&P/BMV IPC, shares of Ollinani, owned by entrepreneur Emilio Azcárraga, gained 2.08% to 82.83 pesos after announcing a partnership with the US investment fund General Atlantic.
Bond Yields and Interest Rates
In the secondary debt market, the yield on the 10-year bond dropped three basis points to 8.96%, while the 20-year bond’s yield increased seven basis points to 9.61%.
Key Questions and Answers
- Q: What was the Mexican Peso’s exchange rate against the USD on this particular day?
A: The Mexican Peso was trading at approximately 17.9319 pesos per USD.
- Q: How did the Mexican stock market perform?
A: The BMV reached new historical closing highs, with the S&P/BMV IPC index increasing to 65,616.43 points.
- Q: What were the key economic indicators mentioned?
A: The US saw a decrease in unemployment benefits claims, while Mexico experienced an increase in its seasonally adjusted unemployment rate.
- Q: How was the trading volume on this day?
A: The trading volume was unusually low, with only 16.4 million shares exchanged.
- Q: Which stocks performed well on this day?
A: El Puerto de Liverpool and Alsea shares were among the top performers.
- Q: What was the news regarding Ollinani’s stock performance?
A: Ollinani’s shares gained 2.08% after the company announced a partnership with General Atlantic.
- Q: How did bond yields change in the secondary debt market?
A: The 10-year bond yield decreased by three basis points, while the 20-year bond’s yield increased by seven basis points.
