Overview of the Mexican Stock Market Performance
The Mexican stock market concluded its trading on Thursday with gains, in a session marked by the monetary policy announcement from Banco de México (Banxico) and mixed economic figures from the United States.
Key Market Indices
- The leading index, the S&P/BMV IPC, rose by 0.95% to 57,474.19 units.
- The FTSE BIVA index gained 0.87% to 1,161.09 points.
Notable Stock Movements
Most values within the reference index closed with advances. El Puerto de Liverpool stood out, rising by 6.88% to 102.55 pesos, followed by Grupo México with a 4.63% increase to 113.54 pesos, and Peñoles with a 2.80% gain to 499.36.
Banxico’s Monetary Policy Decision
Today, Banco de México (Banxico) reduced its key interest rate by 50 basis points, marking its fourth consecutive significant adjustment. The price of money now stands at 8%, the lowest level since 2022. Banxico indicated that it would consider further rate cuts.
Mixed U.S. Economic Data
In the United States, it was reported that the Gross Domestic Product (GDP) fell more than expected in the first quarter. Another report showed that fewer individuals applied for state unemployment benefits last week than anticipated.
Weekly Market Performance
Throughout the week, the S&P/BMV IPC has accumulated a gain of 2.15%, supported by the improved sentiment among investors following the ceasefire in the conflict between Israel and Iran. The principal index of the Mexican market has risen by 16.08% so far this year.
Key Questions and Answers
- What is the current status of the Mexican stock market? The Mexican stock market concluded its trading on Thursday with gains, supported by Banxico’s monetary policy announcement and mixed U.S. economic data.
- Which stocks performed well during this session? El Puerto de Liverpool, Grupo México, and Peñoles were among the top performers, with gains of 6.88%, 4.63%, and 2.80%, respectively.
- What was Banco de México’s (Banxico) decision regarding interest rates? Banxico reduced its key interest rate by 50 basis points, bringing the price of money to 8%, the lowest level since 2022. The central bank signaled its willingness to consider further rate cuts.
- What were the mixed U.S. economic figures reported? The Gross Domestic Product (GDP) fell more than expected in the first quarter, and fewer individuals applied for state unemployment benefits last week than anticipated.
- How has the Mexican stock market performed this week? The S&P/BMV IPC has gained 2.15% this week, driven by improved investor sentiment following the ceasefire in the Israel-Iran conflict. The principal index of the Mexican market has risen by 16.08% year-to-date.
