Mexican Stock Exchange Experiences Worst Drop Since 2018

The leading index of the Mexican Stock Exchange (BMV), the S&P/BMV IPC, which tracks the most traded local stocks, rose by 1.38%, closing at 49,513.27 points on Tuesday, December 31. However, this comes one day after the index fell to its lowest point of the year.

The Mexican stock market experienced significant accumulated losses throughout 2024, driven by increasing economic and political uncertainty in Mexico, as well as currency exchange effects and the electoral victory of Donald Trump in the United States.

The S&P/BMV IPC started the year above 57,386.25 points, meaning it registered a 13.7% cumulative drop in 2024, marking its worst annual performance in the past six years.

Meanwhile, the FTSE BIVA, from the Bolsa Institucional de Valores (Biva), closed the last trading day of the year at 1,004.79 points, with a 15% cumulative decline.

Given the recent drops, and considering factors like exchange rates, the Mexican stock market offers attractive valuations based on fundamentals, leading to optimism for certain instruments, such as Fibras.

The subsequent election victory of Donald Trump in November heightened concerns over the future of the Mexican economy, with fears that his protectionist policies could jeopardize trade with the United States, one of Mexico’s main economic pillars. Trump, who will take office on January 20, has promised to impose significant tariffs on his top trade partners: Canada, Mexico, and China.

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.