Overview of the Mexican Stock Market Performance
On Thursday, the Mexican stock market experienced significant losses, with local indices falling from near-historical highs. The decline was influenced by the progress of a new tax reform bill proposed by President Trump in the United States.
Key Stock Market Indices and Their Performance
- S&P/BMV IPC: The leading index of the Mexican Stock Exchange (BMV) dropped by 1.15% to close at 57,894.82 points.
- FTSE BIVA: The index of the Institutional Securities Market (Biva) descended 1.08% to finish at 1,168.41 points.
Notable Declines Among Individual Stocks
Within the benchmark index, most values closed lower. Notably, Quálitas, an insurance company, saw a 5.91% decrease to end at 206.68 pesos. Industrias Peñoles, a mining firm, experienced a 4.78% drop to close at 404.39 pesos, while Megacable fell 3.26% to finish at 49.31 pesos.
Reasons Behind the Market’s Reaction
Investors remain jittery due to President Trump’s push for a tax cut and spending reduction bill. After extensive debate, the bill was approved by the House of Representatives and is now under review by the Senate for potential approval.
Economic Context in Mexico
In local news, Mexico’s economy expanded by 0.8% annually in the first quarter of 2025, according to final figures from the National Institute of Statistics and Geography (INEGI). Regarding inflation, the Consumer Price Index (IPC) reported a 0.09% increase in the first half of May, surpassing analysts’ expectations.
Market Trends and Outlook
Recently, the stock market has shown an upward trend, nearing its historical highs around 59,000 on the S&P/BMV IPC. However, the market paused its ascent, awaiting further impetus. The index’s year-to-date performance stands at 16.93%.
Key Questions and Answers
- What caused the decline in the Mexican stock market? The drop was primarily due to investor nervousness surrounding President Trump’s proposed tax reform bill in the United States.
- Which stocks experienced significant declines? Quálitas, Industrias Peñoles, and Megacable were among the notable decliners.
- What is the current state of Mexico’s economy? The country’s economy grew by 0.8% annually in the first quarter of 2025, and inflation increased by 0.09% in the first half of May.
- What is the recent trend in the Mexican stock market? The market has been on an upward trajectory, nearing its historical highs before pausing to await further developments.
