The main index of the Mexican Stock Exchange (S&P/BMV IPC) registered this Wednesday its fifth consecutive positive session and its best score in almost five months due to the surprise given to investors by the good performance in the financial results corresponding to the third quarter of 2022, for which they have rewarded stations in the local market.
At the close of the market, the S&P/BMV IPC, which groups the most traded stocks in the domestic market, rose 1.41% to 49,327.11 points. On the other hand, the FTSE BIVA remained above one thousand units with an intraday growth of 1.38%, for both indices it was the highest score since June 8.
“Until now, 50% of the S&P’s BMV IPyC sample has reported, of which 27.8% have presented better results than estimated, 55.6% have been in line and 16.6% below estimate. As of today, the S&P’s BMV IPyC has presented a growth in sales and EBITDA of 14.1% and 8.7% respectively”, said Monex analysts.
The companies that stood out this Wednesday on the BMV were Grupo México and Grupo México Transportes, with increases of 10.88% and 11.76%; followed by Traxión, with 9.28%; Chedraui, 7.56%; América Móvil, with 5.88%, and Vista Oil & Gas, with 5.85%.
The titles of the mining company Grupo México led the increases, with a jump of 10.88% more to 71.65 pesos, due to a strengthening of the price of copper, its main product, and in the prelude to its quarterly report and conference with analysts, in which they could give more details about whether they are still in the race to acquire Banamex.
James Salazar, deputy director of economic analysis at CI Banco, said that this behavior has several edges, such as speculation that the Federal Reserve may moderate its rate hike in December and, in general terms, the good reports that Mexican companies have had.
“Corporate results in Mexico have come out better than expected, unlike in the United States where important technology companies have had results below expectations. In Mexico it seems that the tone has been a little better, since the multiples are cheap in the index and this has helped to solve a very favorable positive rally,” added Salazar.
In the market in general, there were no relevant events of weight that could solve the rise in the Mexican market, so the attractive valuations gave the stock market a boost.
Two factors are expected for next week. On the one hand, the technical factor, in which analysts expect the IPC to be above 50,000 points, which, even if it fails to overcome it, will have a setback towards 49,000 units. And on the other hand, the fundamental has to do with the companies that will report in the next few days and in which the expectation is not very good in profits, which would cause a profit taking in the local market.
“Once again, and supported by the rise of most of the issuers that comprise it, the S&P/BMV IPC showed a very significant extension of the advance, which led it to overcome the resistance at 48,000 and to locate for the first time since April , above the 200-day moving average,” Vector technical analyst Georgina Muñiz said in a report.
