The weight has its biggest gain

MEXICO CITY (El Universal).— The Mexican currency closed yesterday Friday at around 18.11 pesos per dollar in international markets, which meant an appreciation of 1.85% or 34 cents compared to the previous Friday, its biggest weekly gain since November 2023, according to information from Bloomberg.

The market reacted positively to the cabinet appointments announced by President-elect Claudia Sheinbaum.

“The appreciation is due to a correction to the fall of the peso observed in the first two weeks of June, but it does not imply that the risks for Mexico have disappeared, since uncertainty still persists regarding the reform of the Judicial Branch that is planned to be approved in September; the high fiscal deficit and the future of the commercial relationship with the United States,” warned Gabriela Siller, director of economic analysis for the financial group Base.

As a result, the peso continues to accumulate a depreciation in June of 6.59% or 1 peso and 12 cents.

The retail dollar closed yesterday at 18.59 pesos for sale at bank counters, 1.74% or 33 cents below the closing price of the previous week, according to data published by CitiBanamex.

BMV stops bad streak

Despite the 1.02% decline recorded this Friday on the Mexican Stock Exchange (BMV), which brought it to 52,788.5 units, its main indicator closed the week with an accumulated gain of 1.02% and broke a five-week streak of negative closings.

The weekly advance, driven by the appointments to the Cabinet of the next president Claudia Sheinbaum and the meeting she held with the private sector in the country, still leaves the BMV -4.3% below the level prior to the elections of June 2, when the markets resented the majority achieved by the ruling party in the Mexican Congress.

The director of Economic Analysis at the Actinver group, Enrique Covarrubias, explained that yesterday the CPI fell -1.02% and in the weekly cumulative figure it registered an increase of 1.08%, breaking a five-week downward streak.

He added that with the loss of this day, the Mexican market has accumulated a decline of -8% so far in 2024.

During the day, the peso appreciated 1.41% against the dollar, trading at 18.11 units per greenback, after being valued at 18.37 at the close of the previous day, according to data from the Bank of Mexico.

The CPI closed the session at 52,788.5 units, with a loss of 544.53 points and a negative variation of 1.02% compared to the previous day.

The volume traded on the market reached 1.191 billion shares for an amount of 53.1 billion pesos (about 2.932 billion dollars).

Of the 573 companies listed on the day, 154 closed with higher prices, 405 had losses and 14 closed unchanged.

The stocks with the greatest upward variation were the supermarket chain LaComer (LACOMER UBC), with 5.69%; the restaurant chain Alsea (ALSEA), with 4.77%; and the Inter-American Entertainment Corporation (CIE B), with 4.55%.

In contrast, the largest downward variations were those of the financial institution Peña Verde (PV), with -32.99%; the household products company Grupo Vasconia (VASCONI), with -8.43%; and the mining company Industrias Peñoles (PEÑOLES), with -7.07%.

During the day, three of the four sectors lost, materials (-2.08%), consumer goods (-1.17%) and industrial (-1%), and only one gained, financial (0.41%).

AMLO Stability

AMLO says the peso and the market are stabilizing ahead of the next cabinet.

Less nervousness

Mexican President Andrés Manuel López Obrador said yesterday that the peso and the markets have stabilized following the first announcements from the cabinet of his successor, Claudia Sheinbaum. He highlighted a decrease in nervousness in the markets due to the appointment of profiles such as former foreign minister Marcelo Ebrard.