Overview of the Mexican Stock Market Performance
This week, the Mexican stock market begins on a negative note. After two days of advances, local stock indices are now declining in a market without clear direction. The focus is on reviewing domestic inflation data and monitoring the negotiations between the United States and China.
Key Stock Indices Performance
- S&P/BMV IPC: The leading index of the Bolsa Mexicana de Valores (BMV) dropped by 0.36%, reaching 57,854.37 units.
- FTSE BIVA: The index of the Bolsa Institucional de Valores (Biva) decreased by 0.40%, trading at 1,166.97 points.
Notable Declines Among Local Stocks
Most stocks within the S&P/BMV IPC are experiencing declines. Notable drops include:
- Quálitas: The insurance company’s stock fell by 2.76% to 203.90 pesos.
- Grupo Financiero Inbursa: The financial group’s stock declined by 2.42% to 48.16 pesos.
- Grupo Carso: The conglomerate’s stock dropped by 1.53% to 125.29 pesos.
Inflation Data and Monetary Policy Context
Mexico’s inflation rate increased to 4.42% in May, marking its highest level since November and surpassing the target range of 3% ± 1 percentage point set by the Banco de México. The central bank has been reducing its benchmark rate by 50 basis points in response to this rising inflation. Additionally, the underlying inflation also rose above expectations, reaching 4.06%.
Key Questions and Answers
- What is the current state of the Mexican stock market? The Mexican stock market opened this week on a negative note, with local indices declining after two days of advances. The market lacks clear direction and is focusing on domestic inflation data and US-China negotiations.
- Which stocks experienced significant declines? Notable drops were observed in Quálitas (2.76%), Grupo Financiero Inbursa (2.42%), and Grupo Carso (1.53%).
- What are the recent inflation figures and their significance? Mexico’s inflation rate rose to 4.42% in May, surpassing the Banco de México’s target range of 3% ± 1 percentage point. The underlying inflation also increased to 4.06%, prompting the central bank to reduce its benchmark rate by 50 basis points.
