Stock Markets Plunge as COVID-19 SpreadsBy Andrea Villar | Fri, 02/28/2020 - 11:36
Throughout the week, financial markets were attentive to the Coronavirus (COVID-19) development and today, the inevitable happened: the Ministry of Health reported the first confirmed case of the viral disease in Mexico. Following the uncertainty regarding the global contagion, the Index of Prices and Quotations (IPC) of the Mexican Stock Exchange (BMV) plummeted 4.01 percent to 39,939 points on Friday. Meanwhile, BIVA’s FTSE tumbled 3.72 percent to 825.19 points.
In Wall Street, the Dow suffered its worst week since the financial crash of 2008, according to data sourced from Bloomberg. The plunge comes as the US FDA announced it was alerted to the first manufacturing shortage of a drug due to a viral coronavirus outbreak that began in China and has now reached American soil.
In other news, quarterly earnings reports keep coming. Check out the highlights!
Citibanamex Financial Group reached a net profit in 2019 of MX$29.3 billion (US$1.5 billion), 5.17 percent higher than the profit recorded in 2018 but with a slower growth rate than in 2016.
Coca-Cola Femsa's net income fell 13 percent during 2019, pressured by the results of the suspension of activities related to the sale of the company's operations in the Philippines. However, the firm managed to increase its revenue by 6.7 perfect due to price initiatives and optimization of operating revenues and an increase in volume.
Alsea reported a net profit of MX$456.3 million (US$23.1 million) in 4Q19, a jump of almost 151 percent compared to the same quarter in 2018.
Mexican companies invested US$10.2 billion abroad during 2019, 32.6 percent more than in the previous year despite global uncertainty.