Domestic market indices rose for the second day, after experiencing significant losses last month due to the elections.
Mexico’s stock markets closed with gains on the first trading day of July. Local stock indices rebounded for the second consecutive day, following substantial losses last month after the June 2 election.
The leading index of the Mexican Stock Exchange (BMV), the S&P/BMV IPC, which includes the most traded local stocks, increased by 0.85% to 52,883.97 points. The FTSE BIVA, from the Institutional Stock Exchange (Biva), advanced 0.95% to 1,082.44 points.
In this second consecutive rise of the index, most stocks closed higher. Shares of the conglomerate Grupo Carso stood out with a gain of 4.64% to 131.59 pesos, followed by Bimbo’s shares, which rose 3.42% to 66.82 pesos.
Despite the rebound, the main index remains well below its pre-election close on June 2, which saw Morena emerge victorious. Specialists anticipate continued volatility in the market.
The primary source of pressure could be Morena’s interest in reforming the Judiciary, which could advance quickly in the next Congress given the overwhelming majority obtained by the ruling party and its allies in the elections. If the institutional framework is eroded, a higher risk perception towards the country may arise.