Mexican Stock Exchange Falls on Tuesday

On Tuesday, the Mexican Stock Exchange (BMV) closed with significant losses following those seen on Monday, when Grupo Televisa and Volatis led the loss. 

Media giant Grupo Televisa’s stock contracted by 6.44% on Tuesday. The losses add to the 6.07% contraction seen on Monday. The stock now trades at MX$12.39 (US$0.72) per share. The airline Volaris also reported losses during those two days, closing on Tuesday at MX$17.19 (US$1.0) per share. 

The S&P/BMV IPC index, which tracks the performance of the 35 most traded stocks in Mexico, experienced a 0.78% contraction on Tuesday, closing at 51,860.45 points. Similarly, the FTSE BIVA, an index of Bolsa Institucional de Valores (BIVA), recorded a 0.70% loss on Tuesday, ending the day at 1,071.14 units. 

Despite the setbacks, the S&P/BMV IPC stock market index still shows a year-to-date increase of 8.36%. However, it remains below its all-time high of 56,536.68 points, achieved on April 1, 2022. Banco Base reported its expectations for inflation to increase from 5.20% to 5.21% by the end of the year. By the end of 2024, the expectation is for inflation to end at 4.00%. 

The government’s Economic Package for 2024, contemplates a fiscal deficit of 4.9%, the highest since 1988. This will likely increase the costs of Mexico’s debt credit rating, according to Gabriela Siller, Director of Financial and Economic Analysis, Banco Base.