Market Overview
The Mexican stock market sustained and even accelerated losses during Thursday’s session, in a low-volume day marked by continued uncertainty over the Middle East situation.
At the end of the trading day, the S&P/BMV IPC, Mexico’s primary stock exchange index, dropped by 1.17%, closing at 56,068.16 points. Meanwhile, the FTSE-BIVA, the most representative index of the Mexican Securities and Exchange Commission’s (CVM) Institutional Securities Market (Biva), fell 1.11% to reach 1,133.22 points.
The indices recorded their fourth decline in five days, following a reversal from negative to positive on Wednesday.
Trading Volume and Global Sentiment
Trading volume was 84% lower than the average of the past 100 days due to the U.S. holiday, but Thursday’s decline was the sharpest in nearly three weeks.
Mexican stock market performance aligned with the global market sentiment, which traded in the red due to Middle East prospects.
Media reports suggested that the U.S. was preparing attacks against Iran, which could be executed over the weekend despite President Donald Trump’s ambiguous statements.
The potential escalation of the conflict drove oil prices up, reaching their highest levels in five months during the session.
Key Players and Sector Performance
According to preliminary data, Mexico’s economy was expected to show its first advance in three months during May, as indicated by the Early Indicator of Economic Activity.
Declines in the industrial, consumer goods and services, and basic consumer goods sectors pushed the indices downward.
The biggest losers on the S&P/BMV IPC Thursday were Grupo Aeroportuario del Pacífico (-4.21%), followed by Grupo México (-3.39%) and LaComer (-2.92%). On the other hand, Banco Regional (2.44%) and Coca-Cola FEMSA (2.11%) and Arca Continental (2.19%), both Coca-Cola bottlers, were the top gainers.
Key Questions and Answers
- What caused the significant drop in Mexican stocks? The decline was primarily due to low trading volume resulting from a U.S. holiday and increased uncertainty over the Middle East situation, which drove global markets down.
- Who are the key players mentioned in this article? The main entities discussed are Grupo Aeroportuario del Pacífico, Grupo México, LaComer, Banco Regional, Coca-Cola FEMSA, and Arca Continental.
- What is the significance of the preliminary economic data? The Early Indicator of Economic Activity suggested that Mexico’s economy had its first monthly advance in three months during May, indicating potential growth despite the stock market performance.
