Fiesta Time: Mexican Stocks Topple 2014 Highs And Peso Soars To Best Level Since 2015
Portfolio Pulse from Piero Cingari
Mexican assets have seen a significant surge, with the equity market and the currency reaching multi-year highs. The iShares MSCI Mexico ETF (EWW) reached its highest level since December 2014, and the Mexican stock market has gained 27% since the start of the year. The Mexican peso has also strengthened against the U.S. dollar, with a 17% increase year-to-date. Factors contributing to this rally include high interest rates, declining inflation, a resilient U.S. economy, low unemployment, and a thriving tourism sector. Top-performing Mexican stocks include Cemex SAB de CV ADR (CX), Fomento Economico Mexicano S.A.B. de C.V. (FMX), and América Móvil, S.A.B. de C.V. (AMX).
July 14, 2023 | 8:27 pm
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POSITIVE IMPACT
América Móvil, S.A.B. de C.V. (AMX) underperformed versus the local market, rising 17% year to date.
Despite underperforming compared to the local market, América Móvil's stock has still seen a significant increase. This trend is likely to continue in the short term due to the positive economic indicators in Mexico.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
Cemex SAB de CV ADR (CX) has risen 77% year to date, contributing significantly to the performance of the Mexican stock market.
Cemex's strong performance has contributed to the overall surge in Mexican assets. Given the positive economic indicators in Mexico, this trend is likely to continue in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The iShares MSCI Mexico ETF (EWW) reached its highest level since December 2014, indicating a positive trend.
The surge in Mexican assets, including the equity market and currency, has led to a significant increase in the value of EWW. This is likely to continue in the short term due to the positive economic indicators in Mexico.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Fomento Economico Mexicano S.A.B. de C.V. (FMX) gained 39%, contributing to the performance of the Mexican stock market.
Femsa's strong performance has contributed to the overall surge in Mexican assets. Given the positive economic indicators in Mexico, this trend is likely to continue in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The Mexican stock market has outperformed the 500 largest U.S. companies, as monitored by the SPDR S&P 500 ETF Trust (SPY), with a gain of 27% compared to 18%.
The outperformance of the Mexican stock market compared to the SPY ETF indicates a shift in investor focus towards Mexican assets. This could potentially lead to a short-term decrease in the value of SPY.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80