Fifteen of the 36 companies in the main index of the Mexican Stock Exchange (BMV), the S&P/BMV IPC, closed 2022 with a rise in the price of their shares, accumulating a joint market value gain of 397,578 million pesos.
Financial companies were the ones that led the advances in the year, since they have benefited from increases in interest rates by the Bank of Mexico (Banxico) to combat inflation.
Banco del Bajío was the company that earned the most within the index, with a rise of 67.26% in the price of its titles, to 61.55 pesos each.
They are followed by Gentera (which only joined the index in the second half of the year), whose shares rose 66.46%, as well as Grupo Financiero Inbursa (33.93%), Banco Regional (31.94%) and the Bimbo bakery (30.79%).
Jacobo Rodríguez, Director of Analysis at Black Wallstreet Capital, explained that the best performing sector was financial because it benefited from the increase in interest rates by the Bank of Mexico (Banxico), which helped it report growth.
He added that the consumer sector also had a positive behavior, since companies have been able to adjust to inflationary shocks, protecting their sales volumes.
CPI fell 9% in the year
Despite the good performance of these sectors, the two Mexican stock markets were unable to reverse the losses that hit markets around the world in 2022.
The S&P/BMV IPC had a decline of 9.03% in the year, closing at 48,463.86 units, while the FTSE Biva of the Institutional Stock Market, fell 8.09% to 1,012.14 points.
“The year has been very complicated and going forward we will see the damage from interest rates and less economic activity materialize, with a more moderate growth of companies in 2023,” said Carlos González, director of Analysis at Monex Casa de Bolsa.
The decline in the Mexican stocks was much smaller compared to the NASDAQ Composite (-33.10%) and the S&P 500 (-19.44%) of the United States, but it was similar to that of the Dow Jones (-8.78%).
“The Mexican market had better luck since the results and dynamism were, for the most part, recovery, with this, several issuers saw their share prices increase,” said Alain Jaimes, stock market analyst at Signum Research.
Jacobo Rodríguez said that the local stock markets lost less than their US peers due to the low base of comparison in the valuations of the companies.
Of the 35 companies in the S&P/BMV IPC, 21 lost a combined 980.988 million pesos (mdp) in market value during 2022.
The issuer that lost the most in the year was the low-cost airline Volaris, with an accumulated drop in its share price of 55.61% to trade at 16.31 pesos each.
It was followed by the world’s largest content producer in Spanish, Grupo Televisa (-54.03%), Cementos Mexicanos (-43.67%), the industrial company Orbia (-34.00%) and Grupo Elektra (-29.08%).
Almudena Ruiz, director of Variable Income Management at Casa de Bolsa Finamex, said that Volaris’s loss on the stock market during 2022 is explained by the increase in fuel prices that affected its profit margins.
Carlos González said that in this year that has just begun, the financial, airport and real estate sectors will be among the most defensive on the BMV.
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