Mexican Stock Exchange Advances After a Volatile Session

Within the benchmark index, most stocks closed with gains. Shares of Genomma Lab led the advances, rising 4.90% to 18.61 pesos.

Ignacio Teson•Friday, May 31, 2024•1 min read

The Mexican stock exchange closed with moderate gains following a volatile session in which the United States released a weak second estimate of GDP growth for the first quarter.

On Thursday, the indices of Mexico’s stock exchanges advanced moderately during a session marked by the release of weak U.S. GDP growth data for the first quarter.

The leading index of the Mexican Stock Exchange (BMV), the S&P/BMV IPC, which tracks the most traded local stocks, rose 0.25% to 55,352.56 points. The FTSE BIVA, from the Institutional Stock Exchange (Biva), gained 0.19% to end at 1,130.35 points.

Within the benchmark index, most stocks closed with gains. Shares of Genomma Lab led the advances, rising 4.90% to 18.61 pesos, followed by Kimberly Clark de México, which increased by 2.43% to 36.21 pesos.

The second estimate of the United States Gross Domestic Product (GDP) for the first quarter showed a growth of 1.3%, lower than the 3.4% growth in the fourth quarter of 2023. The market is now looking forward to tomorrow’s release of the PCE inflation data in the United States.

Meanwhile, on Thursday, the Mexican peso declined in trading. The local currency erased earlier gains, which were supported by a weaker dollar, as investors adjusted positions ahead of Sunday’s elections in the country.

The exchange rate ended the session at 17.0012 pesos per dollar. Compared to the official rate of 16.9557 pesos from the previous day, as reported by the Bank of Mexico (Banxico), this represents a loss of 4.55 cents or 0.27 percent for the currency.

The dollar’s price ranged between a high of 17.1395 pesos (a level not seen since the beginning of the month) and a low of 16.9076. The Dollar Index (DXY), which measures the greenback against six major currencies, fell 0.32% to 104.76 points.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.