The main index of the Mexican Stock Exchange (BMV), the S & P / BMV IPC, reports a yield of 18.20% so far this year. Compared to the exchanges that make up the Integrated Latin American Market (Mila) and the Bovespa Stock Exchange of Brazil, it is the only one that presents profits.
Carlos Hermosillo, an independent analyst explained that “in Mexico there is the problem of regulatory uncertainty and the rule of law, a situation that is largely offset by the fact that practically half of the income of large public companies in the country is generated through exports and operations based abroad ”.
In an interview he said that “by investing in Mexican issuers, operations are acquired that are not entirely exposed to Mexico economically, although they are regulatory. The profits of Mexican public companies have had an interesting recovery, which has made their valuation lower and at the end of the day that attracts investors with tolerance for risk ”.
For their part, the Mila, Chile, Colombia and Peru stock exchanges are lagging behind, as they show losses in said period in their main indices.
The largest loss is for the Colombian Stock Exchange (COLCAP) which has fallen 3.77% so far in 2021, followed in second place by the Lima Stock Exchange (S & P / BVL Peru General) with a fall in the 0.85 percent year.
However, the smallest drop is in the Santiago Stock Exchange (S&P CLX IPSA) with a loss of 0.83%, despite the sharp drop of more than 6% last Monday.
Janneth Quiroz, deputy director of Economic Analysis at Monex, said that “many of the world’s stock indices have benefited from low interest rates. In addition, investors have acted with great caution ”.
Carlos Hermosillo mentioned that “the markets of Latin America have been hit by the lower interest that there is on the part of institutional investors to invest in those countries. With the exception of Chile, the economic perspective is not the most interesting, and specifically Peru, where the political front has been a red flag for institutional investors ”.
Linked to raw materials
The largest stock market in Latin America, Bovespa in Sao Paulo, is the one with the steepest decline in the region with a loss for the year of 11.36 percent.
Hermosillo explained that this is due in part to the fact that “the Bovespa is highly dependent on companies linked to raw materials and their relationship with China, the main consumer of these inputs.”
In the most recent report of the World Federation of Stock Exchanges (WFE) to September, the BMV has obtained a gain in its capitalization of 38,919.15 million dollars, with which its value is 438,535.85 million dollars.
The rest of the bags reflect losses in their capitalization value.
The Brazilian Bovespa has lost 69,833.65 million dollars, the S & P / BVL Peru General falls 22,702.36 million dollars, the S&P CLX IPSA, of Chile reports a decline of 17,962.55 million dollars, while the Colcap of Bogotá, has had a loss of 10,156.78 million dollars.
Reference-www.eleconomista.com.mx