Mexico's equity market closed lower on Friday, with the S&P/BMV IPC shedding 1.54% and registering a fresh one-month low. Sector-level weakness in Industrials, Consumer Goods & Services and Consumer Staples was a primary contributor to the downward pressure on the index.
Market breadth on the Mexico Stock Exchange showed more companies falling than rising, with 142 issues finishing lower, 91 advancing and 15 unchanged.
Top performers
- Orbia Advance Corporation SAB de CV (BMV:ORBIA) led gains among benchmark constituents, rising 1.95% or 0.35 points to close at 18.33.
- Fomento Economico Mexicano UBD (BMV:FEMSAUBD) added 1.44% or 2.77 points to finish at 195.06.
- Arca Continental, S.A.B. De C.V. (BMV:AC) ended the session up 0.85% or 1.74 points at 207.01.
Lagging names
- Grupo Mexico, S.A.B. De C.V. (BMV:GMEXICOB) was the biggest decliner among the cited names, down 3.41% or 6.86 points to 194.19 at the close.
- Controladora Vuela Compania de Aviacion SAB de CV (BMV:VOLARA) lost 3.03% or 0.39 points to end at 12.50.
- Grupo Carso, S.A.B. De C.V. (BMV:GCARSOA1) fell 2.99% or 3.75 points to close at 121.66.
Outside equities, several commodity and currency contracts moved noticeably during the session. Gold futures for April delivery were up 1.90% or 96.31 to $5,175.01 a troy ounce. Crude oil for April delivery rose 12.33% or 9.99 to $91.00 a barrel, while the May Brent oil contract climbed 8.64% or 7.38 to trade at $92.79 a barrel.
On the currency front, the USD/MXN rate increased 0.40% to 17.80, while EUR/MXN rose 0.59% to 20.67. The US Dollar Index Futures traded lower, down 0.43% at 98.88.
Summary
The S&P/BMV IPC closed down 1.54%, hitting a new one-month low as industrial and consumer-related sectors led losses. Market breadth favored declining stocks, and select heavyweight names showed mixed performance. Commodities and FX markets also posted notable moves in gold, oil and major currency pairs.
Key points
- Benchmark performance - The S&P/BMV IPC fell 1.54% to a one-month low, driven by weakness in Industrials, Consumer Goods & Services and Consumer Staples.
- Stock movers - Orbia, FEMSAUBD and Arca Continental were among the session's top gainers, while Grupo Mexico, Volara and Grupo Carso led declines.
- Commodities and FX - Gold rose to $5,175.01/oz, WTI crude hit $91.00/bbl for April delivery, Brent traded at $92.79/bbl for May, USD/MXN moved to 17.80 and EUR/MXN to 20.67.
Risks and uncertainties
- Sector concentration risk - Continued weakness in Industrials and consumer sectors could keep downward pressure on the benchmark and weigh on companies exposed to domestic demand.
- Commodity price volatility - Large moves in crude oil and gold may introduce earnings volatility for commodity-sensitive firms and influence investor risk appetite.
- Currency movements - A rising USD/MXN and EUR/MXN could affect import costs and corporate FX exposures for Mexican companies.