Overview of the Mexican Stock Market Performance
On Tuesday, both main Mexican stock market indices, the S&P/BMV IPC and FTSE-BIVA, closed lower after shedding earlier gains. This downward trend continued the negative tone set at the start of the week, with Grupo México no longer being the primary driver.
- S&P/BMV IPC: 0.31% decrease to 60,215.75 units
- FTSE-BIVA: 0.28% decrease to 1,206.80 points
The indices marked their third consecutive day of decline, reaching their lowest levels since September 4 – approximately a month ago.
Impact of Auto Production Declines
The stock market reaction was influenced by the news that Mexico’s auto production experienced its second consecutive monthly decline in September, marking the fifth drop this year. Export figures also fell during this period.
Corporate Developments
- Volaris: The airline company reported nine months of consecutive growth in total passenger traffic.
- América Móvil and Entel alliance: América Móvil formed a partnership with Empresa Nacional de Telecomunicaciones (Entel) to explore a potential acquisition of Telefónica Chile’s assets.
- Grupo México: The mining company stated that its debt would not increase significantly if it acquires Banamex, and warned Citigroup that it would not improve its current offer, giving them 10 days to evaluate.
Sectoral Performance
Within the IPyC index, financial services firm Regional (-4.8%), restaurant chain Alsea (-3.73%), and bakery company Grupo Bimbo (-3.26%) experienced the largest declines.
On the other hand, Grupo México (1.63%), FEMSA (1.33%), and Cementos Mexicanos (1.28%) were the top gainers in Tuesday’s trading session.
Key Questions and Answers
- What are the main Mexican stock market indices mentioned? The S&P/BMV IPC and FTSE-BIVA are the primary indices discussed.
- What caused the decline in the Mexican stock market? The decline was influenced by falling auto production and exports in Mexico, as well as corporate developments.
- Which companies experienced growth or partnerships? Volaris reported nine months of passenger traffic growth, while América Móvil partnered with Entel to explore a potential acquisition of Telefónica Chile’s assets.
- What did Grupo México communicate regarding a potential acquisition of Banamex? Grupo México stated that its debt would not increase significantly if it acquires Banamex and warned Citigroup that it would not improve its current offer, giving them 10 days to evaluate.
