Overview of the Mexican Stock Market Performance
On this Wednesday morning, the Mexican stock exchanges are trading with gains. This marks the third consecutive session of advancement, with local indices renewing their records. The movement is primarily driven by shares of the mining company Grupo México.
Key Indices and Their Performance
- S&P/BMV IPC: Up by 0.28% at 62,543.19 units, representing the leading index of the Bolsa Mexicana de Valores (BMV) that measures the most traded local stocks.
- FTSE BIVA: Gained 0.30% to 1,251.92 points, the index of the Bolsa Institucional de Valores (Biva).
Notable Stock Movements
Within the reference index, most values are trading with gains. Grupo México stands out with a 4.68% increase to 143.59 pesos, followed by cement producer Cemex with a 1.19% rise to 16.98 pesos, and bakery Bimbo with a 0.98% gain to 64.72.
Market Trends and Economic Indicators
The stock market’s strong rebound from the beginning of the week continued on Tuesday, boosting the S&P/BMV IPC’s September gains to over 6%. Year-to-date, this benchmark index has accumulated a return of more than 25%.
In economic indicators, the local inflation report showed that the consumer price index accelerated to 3.74% in the first half of September, a lower-than-expected figure that supports expectations for an interest rate cut.
Banco de México’s Next Decision
The upcoming decision by Banco de México is scheduled for Thursday, with investors already betting on another rate cut. Pantheon highlighted, “The inflation data further justifies a 25 basis points rate reduction by Banxico on Thursday.”
Key Questions and Answers
- What is driving the Mexican stock market’s growth? The advancement is primarily due to shares of Grupo México, a prominent mining company.
- Which indices are performing well? Both the S&P/BMV IPC and FTSE BIVA are experiencing gains, with the former up by 0.28% and the latter by 0.30%.
- What are some notable stock movements? Grupo México leads with a 4.68% increase, followed by Cemex (1.19%) and Bimbo (0.98%).
- What are the recent market trends? The Mexican stock market has seen a strong rebound, with the S&P/BMV IPC gaining over 6% in September and more than 25% year-to-date.
- What are the recent economic indicators? Local inflation data showed a 3.74% increase in the consumer price index for the first half of September, lower than expected and supporting expectations for an interest rate cut.
- When is Banco de México’s next decision, and what are investors expecting? The decision is scheduled for Thursday, with investors anticipating another rate cut following the lower-than-expected inflation data.
