Saturday, June 10, 2023

After the occupation of Ferosur railway section, there is a huge decline in BMV on the second day as well.

Mexico’s stock markets fell heavily on Monday. Local indices had their worst day so far this year as an extension of the losses seen on Friday after the government seized a railway section of the Ferrosure company.

The leading index of the Mexican Stock Exchange (BMV), the S&P/BMV IPC, which groups the 35 most-traded stocks in the domestic market, lost 1.53% and closed at 53,466.32 points. From the Institutional Stock Market (Biva), the FTSE BIVA fell 1.44% to 1,106.30 units.

S&P/BMV IPC

Within the benchmark, most constituents ended the day with losses, with 30 constituents in the red and five in the green. The decline was led by Industrias Peñoles, which added 4.30%; Kimberly-Clark, with 3.16%, and Grupo México, with 3.01 percent.

Shares of mining giant Grupo México (-3.01%) fell heavily for the second day in a row, as did its subsidiary Grupo México (-3.60%) after the government seized a railway section operated by Ferrosur. Executed by Navy.

In an analysis note, Massari Casa de Bolsa said, “Market confidence has been affected by the Ferrosure rails takeover.” “This type of maneuver violates the rule of law and creates legal uncertainty that affects investor confidence.”

The stock market started this Monday session on a positive note and gained 0.83 per cent during the day. Mexico’s President Andrés Manuel López Obrador previously said the government was willing to compensate Grupo México if that were to happen.

After two of its worst days so far this year, the S&P/BMV IPC posted a loss of 3.25% last Thursday, closing at 55,263.11 units. In the same days with the decline, the FTSE BIVA index accumulated a loss of 3.22% from 1,143.10 units.

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World Nation News Desk
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