Background on Mexican Stocks and Relevant Indices
The Mexican stock market experienced its largest decline in two weeks on Thursday, with the S&P/BMV IPC and FTSE-BIVA both dropping. The S&P/BMV IPC, managed by the Bolsa Mexicana de Valores (BMV), fell 0.78% to close at 57,890.99 points. Meanwhile, the FTSE-BIVA, overseen by the Bolsa Institucional de Valores (Biva), decreased by 0.78% to reach 1,168.73 points.
Market Context and Recent Trends
Although these indices marked their largest drop in two weeks, they remained close to their best levels in over a month, achieved on Wednesday. The trading volume was 28% lower than the average of the past 100 sessions, likely due to an early closure of the U.S. market.
Economic Indicators and Global Factors
The Mexican market incorporated recent economic updates, such as private consumption showing its second monthly increase in five months while fixed capital investment declined for the first time in three months. These indicators come amidst a week of negative economic signals, including the slowdown in private credit to the sector, decreased remittances from abroad, and lower light vehicle sales.
Positive Developments
On the U.S. front, non-agricultural employment data for June exceeded expectations, potentially easing concerns sparked by a weaker-than-expected private payroll report from ADP on Wednesday.
Geopolitically, news emerged that U.S. President Donald Trump announced via social media his intention to hold a phone conversation with Russian President Vladimir Putin.
Investors, both domestic and international, continue to monitor ongoing trade negotiations between the U.S. and various countries ahead of July 9, when the world’s largest economy plans to reimpose tariffs initially announced in April.
Top Performers and Laggards
Among the largest companies listed on the S&P/BMV IPC, Grupo Carso (-3.06%), El Puerto de Liverpool (-3.02%), and Walmart de México (-2.76%) experienced the most significant losses. Conversely, Alfa (4.97%), Megacable (4.91%), and Gentera (3.80%) were the top gainers.
Key Questions and Answers
- What are the Mexican stock indices mentioned in the article? The S&P/BMV IPC and FTSE-BIVA are the two main Mexican stock indices discussed.
- Why did these indices experience a decline? The drop was due to recent economic updates, such as private consumption growth and fixed capital investment decline, along with broader negative economic signals.
- What are some positive developments mentioned? The U.S. non-agricultural employment data exceeded expectations, and President Trump announced a phone conversation with Russian President Putin.
- What factors are investors monitoring globally? Investors are keeping an eye on U.S. trade negotiations with various countries ahead of the reimposition of tariffs in July.
- Which companies had the largest gains and losses? Alfa, Megacable, and Gentera were the top gainers, while Grupo Carso, El Puerto de Liverpool, and Walmart de México experienced the most significant losses.
