The five largest issues in Mexico in the market value (Walmart de México y Centroamérica (Walmex), América Móvil (AMX), Grupo México (GMéxico), Fomento Económico Mexicano (FEMSA) and Banorte, occupy 43.41% of the Mexican stock market. Stock Exchange (BMV ).
In the market’s main index, the S&P/BMV IPC, of the 35 companies with the most stock market in the country, there is a greater focus, because the top 5 hold 54.22% of the market value.
Andrés Maza, head of GBM Investments, commented that this reflects how the Mexican stock market has contracted. “Many of the foreign investors who want to have exposure to Mexico are hiring at those stations,” he said.
The manager explained that for this reason, foreign investors often forget about other index results and the rest of the market, “where they can invest a lot of value, growth and opportunities”.
Walmex, AMX, GMéxico, FEMSA and Banorte together accumulate a capitalization of 224,484 million, according to financial data.
The total BMV, from 139 companies (including Fibras), is worth 517,124 million. The S&P/BMV IPC market alone was 410,451 million dollars.
“Our business is contracted to a few companies, because we need to increase the number of stations. The problem is not that they are big and that the markets meet in them, but the problem is that there are few companies and those are smaller”, said Carlos González, director of analysis of Monex Casa de Bolsa.
Valentín Mendoza, director of market research at Actinver Casa de Bolsa, explained that the largest companies in the BMV, also called AAAs, as “valves of entry and exit” in the Mexican market for foreign investors, determine the movement in their share of the stock market in general.
Other markets are less contracted, such as the United States, where the five largest companies in the S&P 500 (Apple, Microsoft, Alphabet, Amazon and Nvidia) add a capitalization value of 7.6 trillion dollars, that is, 22.97% of the total value of the index.
The entire S&P 500 has a market capitalization of $33.2 trillion.
BMV is worth less than Nvidia
The five largest companies in the US market are worth more than 15 times what the entire Mexican stock market is, a figure, according to analysts, of how small the Mexican market is, but also of its potential growth.
Lake, with a market capitalization of 2.5 trillion dollars on Wall Street, the largest company in the world on the Stock Market, is worth five times more than BMV, which is worth 517,124 million.
Nvidia, which manufactures semiconductors, is the fifth largest in the US market, with a market share larger (671,618 million) than the entire Mexican Stock Exchange.
Andrés Maza emphasized that although the Mexican stocks may seem small, the big issues in the stock market are “who are the leaders in their industry, not only in Mexico, but globally.”
“We have a partnership with the largest copper reserves in the world (Grupo México) and the leading silver producer of the world (Industrias Penoles),” he recalled.
“In the consumer sector, for example, we have a partnership with the largest convenience store chain in Latin America and the largest bakery in the world (Bimbo), added the Director of Investments at GBM.
Apple and Microsoft have the largest shares in the S&P 500
Apple and Microsoft this week reached the highest combined stake in the S&P 500, with 13.3%, according to Securities Strategist.
Both companies have a combined market capitalization of $4.6 trillion, while the 500 companies in the S&P 500 are worth $34.2 trillion, according to financial data.
The two companies have never achieved such a high share since AT&T and IBM achieved a larger merger in 1978, according to S&P Dow Jones Indices analyst Howard Silverblatt, reported by the Wall Street Journal.
The increase in the participation of these two companies is partly explained by the good performance that their shares have had in the year to date, in the middle of the recovery of the technology sector after 2022 in which they had heavy losses.
Apple, the maker of the iPhone, is up 22.32% on the NASDAQ composite until 2023, while software developer Microsoft is up 15.78%.