Overview of the Mexican Stock Market Performance
On Tuesday, Mexico’s stock exchanges closed with gains, extending the strong rally from the previous day and reaching new record highs. The local stock indices, S&P/BMV IPC and FTSE BIVA, led by telecommunications giant América Móvil, were the main drivers of this growth.
Key Stock Market Indices Performance
- S&P/BMV IPC: The leading index of the Mexican Stock Exchange (BMV) increased by 0.59% to reach 62,368.19 points.
- FTSE BIVA: The index of the Institutional Securities Market (Biva) rose by 0.55% to 1,248.14 points.
Since the beginning of September, the S&P/BMV IPC has accumulated a rise of 6.23%. Year-to-date, the benchmark index has advanced by 25.96%, outperforming other stock markets, including New York’s.
Notable Company Performances
Within the reference index, most values closed with gains. The telecommunications titan, América Móvil led the way with a 3.61% increase to 19.51 pesos, followed by Pinfra with a 2.07% rise to 253.44 pesos.
Outside the reference index, Grupo México Transportes stood out with a 7.45% increase to 35.34 pesos, following its announcement of starting a public offer to acquire shares as part of the process to delist from the local stock market.
Investor Focus and Local Factors
Investors closely monitored comments from Jerome Powell, the President of the Federal Reserve, who expressed caution regarding inflation and employment weakness. On the local front, there was a slight uptick in retail sales and a weak Indice de Actividad Económica Empresarial (IAE) report.
Key Questions and Answers
- What is the Mexican Stock Exchange? The Bolsa Mexicana de Valores (BMV) is the primary stock exchange in Mexico, where companies listed trade their shares and other securities.
- Who is Carlos Slim? Carlos Slim is a prominent Mexican business magnate, investor, and philanthropist. He is the former richest person in Latin America and has significant interests in various sectors, including telecommunications through América Móvil.
- What is an OPA? An Oferta Pública de Adquisición (OPA) is a type of takeover bid in which a bidder offers to buy all or most of the shares of a target company from its shareholders.
- What is the Indice de Actividad Económica Empresarial (IAE)? The IAE is a leading economic indicator published by Mexico’s National Institute of Statistics and Geography (INEGI) that measures the monthly change in business activity in Mexico’s manufacturing, construction, and services sectors.
