Overview of the Mexican Stock Market Performance
The Mexican stock market has reached new historical highs, driven by the attractiveness of valuations compared to international markets.
The S&P/BMV IPC index of the Mexican Stock Exchange gained 0.24%, reaching an all-time high of 58,735.86 points.
Meanwhile, the FTSE-BIVA index of the Mexican Securities Institutional Market increased by 0.21% to 1,187.97 units, only 1.7% away from its record high of 1,208.03 points set on February 7, 2024.
Reasons Behind the Market Surge
Market analysts believe that investors find the Mexican equity market appealing due to reduced uncertainty and attractive stock valuations.
“On Tuesday, the BMV index surpassed 59,000 points during intraday trading due to increased global optimism regarding improved US trade relations with other countries,” stated analysts from Banamex in a report.
Top Performing Stocks
- Megacable: The stock with the best performance during the session on the S&P/BMV IPC, rising by 5.25% to close at 51.15 pesos per share.
- Grupo Aeroportuario del Pacifico: The stock gained 2.70% and closed at 441.83 pesos per title.
- Alfa: The industrial conglomerate from Regio saw its shares increase by 1.82% to 15.11 pesos per unit.
Underperforming Stocks
On the downside, Grupo Aeroportuario del Sureste experienced a 6.57% decline, closing at 621.98 pesos.
Qualitas dropped by 2.89% to end at 214.41 pesos, while José Cuervo, the world’s largest tequila producer, fell 1.71% to 23.43 pesos per share.
Market Outlook for the Week
Looking ahead, investors will monitor two significant events: the publication of the Banco de México’s monetary policy meeting minutes on Thursday and Mexico’s unemployment rate data on Friday.
These events will be crucial in assessing the Mexican peso’s direction amidst a volatile external environment characterized by risk aversion, dollar depreciation against other strong currencies, and emerging market currencies.
Key Questions and Answers
- What is driving the Mexican stock market to new highs? The attractiveness of valuations and reduced uncertainty in the Mexican equity market are key factors.
- Which stocks performed best during the session? Megacable led with a 5.25% increase, followed by Grupo Aeroportuario del Pacifico (2.70%) and Alfa (1.82%).
- Which stocks underperformed during the session? Grupo Aeroportuario del Sureste fell 6.57%, Qualitas dropped 2.89%, and José Cuervo declined by 1.71%.
- What events will impact the Mexican stock market this week? Investors will watch the Banco de México’s policy meeting minutes and Mexico’s unemployment rate data for insights into the peso’s direction.
