Because Mexican stock valuations are below their historical averages, the S & P / BMV IPC, the main index of the Mexican Stock Exchange (BMV), is projected to be between 53,000 and 55,000 points for the year. next year, Valentin Martínez, deputy director of Investment Portfolio Strategies in Sura México, announced.
In the seminar “The pulse of the markets in 2021 and prospects for 2022″, held remotely, the specialist explained that when the Mexican equity market is compared with other emerging countries in Latin America, Asia and Europe, it looks ” favorable”.
However, he said, Mexico’s idiosyncratic factors remain a risk and no change is expected, at least in the medium term.
“The stock market in Mexico is cheap, but what could stop its progress in the coming months is the economic growth of the country, which has not been so remarkable and questions about economic policy remain,” said the specialist.
Although the factors that can play in favor of Mexican equities are the corporate results of the issuers, since the consensus of market analysts foresee a growth in the profit of companies that are listed on the Stock Market of around 4 percent.
“Although this growth is low, to the extent that mobility and economic reactivation gain more traction, we could see surprises in these expectations and when surprises occur the markets react favorably,” said Valentín Martínez.
This year the S & P / BMV IPC accumulates a capital gain of 13.48 percent. Although the consensus of analysts foresees that the main index of the BMV will approach levels of 55,000 points this year, it will hardly be possible, especially due to the uncertainty and volatility that exists in the stock markets.
Martínez said that the political and economic reality of other countries in the American region, such as Brazil, is not going through its best moment, which in a certain way places Mexico in a “relatively favorable” situation, as long as there is no decision that create tension in the markets.
In addition, he considered that the pandemic, now with the Omicron variant, and inflation will continue to cause uncertainty and volatility.
Cristóbal Doberti, regional director of Portfolio Strategies at Sura Asset Management, commented that in the global context they continue to favor equities from developed countries and Mexican stocks are overweight.