Unlike the main US indices, the two stock markets that operate in Mexico failed to recover and closed with losses of more than 1% in Monday’s session.
The Price and Quotation Index (IPC) of the Mexican Stock Exchange, made up of the shares of the 35 most traded companies, ended at 50,890.59 units or with a drop of 1.37%, with five days down. Meanwhile, the FTSE BIVA, the benchmark of the Institutional Stock Exchange (Biva), fell 1.41% to 1,052.29 points.
A total of seven S&P/BMV IPC issuers lost 57.579 million pesos in market value only this Monday. While losses were recorded in 29 of the 35 companies included in said index.
The worst performance was that of Megacable, its share price fell -3.84%, equivalent to 2,195 million pesos of loss in market value. Grupo México, for its part, erased 26,624 million pesos in “market cap” or -3.79% and Industrias Peñoles fell -3.78%, which represented 3,546 million pesos less in its market capitalization.
Losses in the Mexican stock market were concentrated in the materials sector (-2.80%) and the financial sector (-2.59%), exposed Banco Base in an analysis.
He added that the negative behavior in most of the indices is explained by a greater aversion to risk motivated by nervousness due to the increase in geopolitical tensions between Russia and Western countries.
Another factor that caused instability in the stock markets of Mexico and, in those of the world, was the speculation about the monetary policy of the Federal Reserve (Fed), since the first two-day meeting begins today, while investors expect that the central bank reports on a tightening of its monetary policy in the face of high inflation.
In fact, the market will remain especially attentive to the comments of the president of the Fed, Jerome Powell, regarding the beginning of increases in the interest rate.
“The session was also characterized by high volatility due to global nervousness, with the CBOE Volatility Index (VIX) reaching a maximum of 38.94 points, a level not seen since October 2020,” adds the Banco Base report.