Overview of the Week’s Market Activity
This past week, Mexican stock markets experienced significant fluctuations due to escalating trade tensions between the United States and China, the world’s two largest economies. The BMV (Bolsa Mexicana de Valores) and BIVA (Bolsa Institucional de Valores) indices saw a weekly gain of nearly 2%, marking their best performance since September. However, the week ended with losses on Friday, with the S&P/BMV IPC dropping 1.28% and the FTSE-BIVA falling 1.34%.
Weekly Performance
- The S&P/BMV IPC increased by 1.94% compared to the previous week, while the FTSE-BIVA rose by 1.76%.
- Both indices ended two weeks of declines, recording their best performance since September.
- In October so far, the S&P/BMV IPC has decreased by 1.86%, and the FTSE-BIVA has dropped by 2.21%.
Top Performers and Laggards
According to a report by Actinver Casa de Bolsa, 21 out of the 35 companies in the IPC showed gains compared to the previous Friday. Orbia, a leading industrial conglomerate, led the gainers with a 14.30% increase following rumors of a potential divestment in one of its business units. Becle, the world’s largest tequila producer (with José Cuervo as its primary brand), and Walmart de Mexico also reported gains of 12.75% and 9.37%, respectively.
On the downside, Banco Regional’s stocks were the biggest losers, falling 7.95%. Quálitas, Mexico’s leading auto insurance company, followed with a 6.51% decline, and Grupo BMV retreated by 4.47%. These losses come amidst growing trade tensions between the US and China, as well as uncertainty surrounding a prolonged US federal government shutdown.
Upcoming Market Events
Investors will closely monitor the release of quarterly reports from local companies this week. Additionally, the Senate’s approval and publication of the Amargo Reform in the Federal Register have been significant developments.
Key Questions and Answers
- Q: What drove the recent gains in Mexican stock markets?
A: The weekly performance was fueled by positive developments, such as the Senate’s approval of the Amargo Reform and anticipation of strong quarterly reports from local companies. However, global trade tensions between the US and China, along with uncertainty around the US federal government shutdown, led to Friday’s losses.
- Q: Which companies performed best during this week?
A: Orbia, Becle, and Walmart de Mexico were the top performers, with gains of 14.30%, 12.75%, and 9.37%, respectively.
- Q: Which companies experienced the most significant losses?
A: Banco Regional and Quálitas led the declines, with losses of 7.95% and 6.51%, respectively.
- Q: What events should investors keep an eye on in the coming week?
A: Investors will focus on the publication of quarterly reports from local companies and any further developments related to global trade tensions or the US federal government shutdown.
