Aversion to local risk, a factor that causes losses in the BMV

This Thursday, the Mexican Stock Exchange (BMV) closed with heavy losses.

An analysis of the results by the newspaper El Economista suggests that there is an aversion to local risk among investors. This will be the fifth week down. The securities that recorded the most losses were Grupo Carso and Televisa.

The trend has been dragging on since the elections on June 2, where Morena and its allies obtained the majority of places in Congress, which would allow both President López Obrador and Claudia Sheinbaum to carry out reforms to the Judiciary.

Falling values

The Mexican Stock Exchange (BMV) fell 1.32% this Thursday in its main indicator, to stand at 52,275.65 units, to outline a negative week before the last day, in a session with mixed results globally.

With the loss of this day, the Mexican index is shaping up to be a negative week, accumulating -1.62%. Last week it recorded a drop of -4%.

“The capital market closed the session with mixed results among the main global stock indices,” the director of Economic and Financial Analysis of Banco Base, Gabriela Siller, told EFE.

In the United States, he specified, the Dow Jones lost 0.17%, the Nasdaq Composite gained 0.34% and the S&P 500 advanced 0.23%.

In Mexico, Siller pointed out, the Price and Quotation Index (IPC), the main indicator of the BMV, “closed the session with a loss of 1.32% and with today’s fall, the IPC is 11.39% below the historical maximum reached on February 7 of this year”, when it reached 58,711.87 units.

For his part, the director of Economic Analysis at the financial group Actinver, Enrique Covarrubias, pointed out that on the day “the CPI detached itself from the dynamics of its peers in the United States and fell -1.32%. With this movement, the “Accumulated loss so far in 2024 was -8.9%.”

On the day, the peso appreciated 1.5% against the dollar, trading at 18.47 units per greenback, after trading at 18.75 at the close of the previous day, according to data from the Bank of Mexico.

“The depreciation of the peso is due to a correction to the fall of the two previous sessions, in which the peso accumulated a depreciation of 2.76% or 50.3 cents. The appreciation occurs one day after the Bank of Mexico sent the sign that they are prepared to intervene in episodes of greater volatility,” said Siller.

The IPC closed the session at 52,275.65 units, with a loss of 700.24 points and a negative variation of 1.32% compared to the previous day.

The volume traded in the market reached 250.3 million securities for an amount of 16,214 million pesos (about 877.8 million dollars).

Of the 605 firms that traded on the day, 172 ended with their prices rising, 414 had losses and 19 closed unchanged.

The securities with the greatest upward variation were those of the maritime transport company Grupo TMM (TMM A), with 5.88%; of the Frisco mining company (MFRISCO A-1), with 3.92%, and of the Mexican Restaurant Corporation (CMR B), with 2.88%.

In contrast, the largest downward variations were from the home builder Desarrollo Homex (HOMEX), with -12.5%; from Banco BBVA (BBVA), with -4.74%, and from the chemical products distributor Alpek (ALPEK A), with -4.14%.

During the day, the four sectors fell, starting with the financial sector (-1.49%), followed by the frequent consumer sector (-1.08%), the industrial sector (-0.93%) and the materials sector (- -0.87%).