BMV Expected to Remove Alpek from Benchmark IPC Index

The Mexican Stock Exchange (BMV) will announce changes on Sep. 5 to the composition of its benchmark S&P/BMV IPC index, with market analysts anticipating the removal of petrochemical company Alpek. The IPC, which tracks the 35 most traded companies on the exchange, undergoes a rebalance every six months. The changes will take effect Sept. 22.

Analysts from Banorte, Monex, and Bx+ said Alpek is expected to exit the index following the spin-off of Alfa in April. Banorte noted that the IPC sample will return to 35 components after Alpek’s departure.

According to Gustavo Hernández, Analyst, Bx+, Alpek did not meet the requirement of being traded on at least 95% of business days during the last six months, recording only 80 of the minimum 117 days needed. Orbia, a producer of PVC, polymers, and pipes, will remain in the index.

Janneth Quiroz and César Salinas, Analysts, Monex, highlighted that the IPC methodology aims to limit excessive turnover among issuers. If confirmed, this would mark the fourth rebalance in recent history without major changes, after similar outcomes in 2019 and 2022.

To be included in the IPC, companies must meet criteria such as being traded for at least three months, having at least 10% of shares as free float, and maintaining a minimum market capitalization of MX$10 billion (US$533.5 million) in floating shares based on a three-month weighted average price.

Inclusion in the IPC is significant for issuers, as many domestic and foreign investors are restricted to companies listed in the index. Removal can reduce visibility and investor preference.

Current IPC members include Banorte, Walmart de México (Walmex), América Móvil, FEMSA, Bimbo, Alsea, Cemex, Gruma, and Grupo México.