Mexican Stock Market Falls for Fifth Consecutive Session

Mexico’s stock exchanges closed in the red on Thursday, with local indices declining for the fifth straight session, impacted by an interest rate cut from the Bank of Mexico (Banxico).

The benchmark S&P/BMV IPC index, which tracks the most traded stocks on the Mexican Stock Exchange (BMV), fell 0.38% to close at 50,553.31 points. Meanwhile, the FTSE BIVA index of the Institutional Stock Exchange (Biva) dropped 0.49% to 1,036.32 points.

Within the S&P/BMV IPC, most stocks ended lower. Notable decliners included Orbia Advance, which fell 2.40% to 17.92 pesos, and Walmex, down 2.32% to 55.04 pesos. On the positive side, airline Volaris saw a significant gain of 5.10% to 16.69 pesos.

This session marked the fifth consecutive loss for the S&P/BMV IPC index, which has accumulated a decline of 3.36% since closing at 52,311.08 points last Thursday. It is now approaching the annual low of 49,486.17 points.

Banxico confirmed on Thursday its decision to cut interest rates by 25 basis points to 10.25%. The Governing Board emphasized that the balance of risks remains tilted to the downside and noted that the inflation outlook continues to improve, potentially paving the way for further rate cuts.

With this fourth rate cut in 2024, Banxico has reduced rates by a total of 100 basis points since the start of its easing cycle. This time, the decision was unanimous, in contrast to September’s vote when Jonathan Heath advocated for maintaining the rate.