Mexican Stock Market Wiped Out $159.06 Billion in 2024
The Mexican Stock Exchange (BMV) lost $159.06 billion in value, a 27.60% decline, dropping from $563.91 billion in January to $417.61 billion by December. This made the BMV the second-worst performer after Brazil’s Bovespa.
Meanwhile, the Bovespa Index from the São Paulo Stock Exchange in Brazil recorded the largest loss among global indices, erasing $189.92 billion in market value. The index dropped from $928.32 billion in January to $723.46 billion by December, marking a sharp decline of 20.79%. Currency depreciation was a key factor.
This made the BMV the second-worst performer after Bovespa. Additionally, the Santiago Stock Exchange in Chile experienced a loss of $6.56 billion, and the Colombian Stock Exchange saw its market value drop by $394.52 million.
Gains in North America
In stark contrast, stock markets in North America posted significant capitalization gains. The Nasdaq Composite added $7.2 trillion in market value, leading global indices. The New York Stock Exchange (NYSE) gained $6 trillion, maintaining its position as the world’s largest stock exchange by monetary volume and number of listed companies. The Toronto Stock Exchange (TSX) in Canada also saw an increase of $462.30 billion in market capitalization.
Factors Behind LATAM Stock Market Declines
The BMV’s performance in 2024 was influenced by several key factors. One of the primary contributors was the weakened peso, which began losing value in May and continued to decline after the U.S. elections. This devaluation was exacerbated by political uncertainty and the election of Donald Trump, whose aggressive rhetoric on trade and migration led to a decrease in investor confidence.
Additionally, a controversial judicial reform in Mexico made the market less attractive to foreign investors, further exacerbating the decline. These factors, combined with broader macroeconomic challenges, played a significant role in the Mexican Stock Exchange’s loss of market value throughout the year.
In Brazil, the sharp depreciation of the Brazilian real played a major role in the country’s market downturn. This depreciation was largely a result of an expansionary fiscal policy characterized by high public spending. The combination of high government expenditure and weakening currency caused significant declines in the Brazilian stock market.
Furthermore, the loss of dollar reserves by Brazil’s Central Bank, as it was forced to defend the value of the real, exacerbated the situation. These financial measures, aimed at stabilizing the currency, led to instability in the broader market.
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