Mexican stock market boom at historic highs

The Mexican Stock Exchange (BMV) once again reached unprecedented levels and recorded its third consecutive day of increases.

Analysts emphasized that international investors consider the stock market a favorite due to expectations that the Federal Reserve will cut its interest rate following the negative employment data.

The leading S&P/BMV IPC index reversed its early losses and rose 0.28% to 60,649.76 points. The FTSE-BIVA, part of the Institutional Stock Exchange, gained 0.12% to 1,212.84 points, also hitting a record high.

So far this year, the S&P/BMV IPC has gained 22.49 percent and the FTSE-BIVA has gained 20.71 percent.

Brian Rodríguez, a stock market analyst at Monex Casa de Bolsa, commented that there are several factors that could lead the stock market to reach record highs.

"Stock exchanges are coming from a comparable base where significant challenges were expected, and the market has managed to overcome them. This has given us a better outlook and expectations that have improved over time. This has pleased investors, especially foreign ones."

The analyst emphasized that, at the same time, most companies have presented positive financial reports for the second quarter, and the Mexican economy has improved. A recession is not expected, but with modest growth.

"It still has potential to rise," said Humberto Calzada, chief economist at Rankia Latin America, adding that "the turbulent part of the Trump issue with the tariffs is over, and what lies ahead could be positive."

BMV will mediate the purchase of M Bonds

The BMV announced that it has received authorization to operate a new system that will make government bond transactions more secure and efficient. Individuals will be able to buy and sell these debt instruments through the stock market, and other securities will be added later.

This is the Central Securities Counterparty (CCV) in the Debt segment, which begins with M Bonds, the most representative instrument in the local debt market.

According to the Mexican Securities Market Commission (BMV), the introduction of CCV "strengthens the system's resilience, improves operational efficiency, and promotes equitable access, aligning it with international standards that position Mexico as a competitive destination for global capital."

The CCV simplifies operations, standardizes processes, and reduces errors. It allows for reduced settlement amounts, frees up liquidity, and optimizes balance sheets. The stock exchange stated that, in the initial stage, "the CCV Debt will begin clearing and settling M Bonds."

In later phases, it plans to expand its services to other local government debt instruments and government repurchase agreements, according to the exchange. (With information from agencies)