Overview of the Mexican Stock Market Performance
The Mexican stock market concluded the week with gains, despite investor nervousness caused by the ongoing conflict between Israel and Iran. The local indices rose due to market volatility stemming from the expiration of futures and options, known as the “Witching Day.”
Key Index Movements
- S&P/BMV IPC: The primary index of the Bolsa Mexicana de Valores (BMV) increased by 0.35% to close at 56,264.69 points.
- FTSE BIVA: The index of the Bolsa Institucional de Valores (Biva) advanced by 0.30% to reach 1,136.60 units.
S&P/BMV IPC
Within the reference index, mixed performances were observed. Becle, a tequila producer (José Cuervo), led the advances with 4.77% to 23.06 pesos, while PINFRA headed the declines with 4.81% to 169.44 pesos.
Geopolitical Tensions Impact Mexican Stock Market
Despite the daily gains, the indices registered a second consecutive week of losses. Investor anxiety over the Israel-Iran conflict and the potential U.S. involvement affected stock performance.
Compared to the previous Friday’s close of 57,438.57 points, the S&P/BMV IPC experienced a 2.04% decline in its second consecutive week of losses. The cumulative movement reduced the index’s year-to-date gain to 13.64%.
Unexpected Advance Amidst Volatility
The stock market advance occurred during the well-known “Witching Day,” when investors adjust portfolios due to the expiration of various instruments. In this context, 1,128.8 million shares were traded, compared to the average of 200 million in recent months.
Investors will closely monitor the upcoming week for news on the Middle East conflict while awaiting local inflation data and the Banco de México’s policy announcement, which may further reduce interest rates by 50 basis points.
Key Questions and Answers
- What is the Mexican stock market’s performance this week? The Mexican stock market ended the week with gains, despite investor nervousness caused by geopolitical tensions between Israel and Iran.
- Which indices showed gains or losses? The S&P/BMV IPC increased by 0.35%, while the FTSE BIVA advanced by 0.30%. However, both indices experienced their second consecutive week of losses.
- What caused the market volatility? The market volatility was due to the expiration of futures and options, known as the “Witching Day.”
- What are investors watching for next week? Investors will closely monitor news related to the Middle East conflict, local inflation data, and the Banco de México’s policy announcement.
