The Mexican Stock Exchange (BMV) opened 2023 with its best start to the year since 1996, driven by a positive sense of investors towards the Mexican market, seeing it as an attractive investment destination.
The main stock index, the S&P/BMV IPC of the BMV gained 4.83% in the first four sessions of the year, closing this Thursday at 50,805.21 units. In 1996 it rebounded 8.37% in the same period.
In this way, 33 of the 36 issuers listed in the index present a positive return on their shares, accumulating a gain in market value of 321.900 million pesos.
According to Jacobo Rodríguez, director of Analysis at Black Wall Street Capital, the rise in recent days is due to a restructuring of investment portfolios, because Mexico is seen as a good investment destination for this 2023 with “very high valuations”. attractive, that are very cheap, and in businesses that are extremely profitable”
He said that “we, as an investment fund, in the last four years have been invested outside of Mexico, because we did not like it as a destination. For this 2023 we are beginning to accumulate some positions, since we are beginning to like the Mexican Stock Market”.
For its part, the FTSE-BIVA index, of the Institutional Stock Market, rebounded 4.76% in the same period, being its highest rise in the first four days of a year since it began operations in 2018.
For Carlos González, Director of Analysis at Monex Casa de Bolsa, the good start in the first days of the new year is not necessarily an indication of what awaits the local market in 2023, since they are still days of low volume of operations after the December vacation period.
This is the first week, typically the one with the lowest trading volume. I think there will be more clarity until the following week,” said the Monex analyst.
However, the Monex analyst said that the fact that there is a positive sentiment in the market should not be overlooked since the end of the upward cycle in the interest rate of the Bank of Mexico is already in sight.
mining companies stand out
In the first days of the year, the sector that stands out the most in the BMV is mining, with Industrias Peñoles leading the gains within the S&P/BMV IPC by rebounding 19.25% to 285.8 pesos per share.
Jacobo Rodríguez explained that the company has presented progress since the end of last year thanks to the recovery in the prices of gold and silver, minerals that are the main sources of income for the company.
The second company that earns the most is Operadora de Sites Mexicanos (17.42%), followed by the mining company Grupo México (12.07%), Grupo Aeroportuario del Pacífico (9.74%) and Cemex (8.38%).
By 2023, analysts differed regarding the sentiment that will prevail in the Mexican stock market, given the expectation that there will be a recession in the United States.
In 2022 the concern was inflation, this year it is the increase in interest rates and economic growth,” said Carlos González.
He added that a rather complicated first half of the year is expected, followed by a second half with “opportunities”.
For Jacobo Rodríguez, the fact that there is going to be a recession in the neighboring country to the north does not necessarily sentence the Mexican Stock Exchange to have a negative performance in the year, since “it can better withstand a recession than the US markets”.
Monex estimates that the S&P/BMV IPC of the Mexican Stock Exchange will close 2023 at 56,500 units, which implies that the stock index would close this year with an annual gain of 16.58 percent.
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