Weekly Mexico Market Monitor

Friday AM, July 28, 2023

MARKETS  

The FTSE-BIVA index closed on July 27 at 1,128.77, up from its July 20 close at 1,104.81.  

The MXN/USD exchange rate closed at 16.86 pesos to the dollar on July 27 from its close of 16.88 pesos on July 20.  

The Mexican 10-year bond (2031) closed on Thursday with a yield of 8.886% down slightly from a yield of 8.814% on July 20.  

The FTSE-BIVA Top Stock Gainers for the week were: GENTERA (+6.86%), BECLE  (+5.80%) and MEGACABLE (+5.73%) and the Biggest Losers were: AXTEL (-10.26%), VOLARIS  (-9.71%) and QUALITAS (-6.60%) 

CORPORATE & MARKET NEWS  

Moody's lowered Pemex's outlook to negative but kept its 'B1' rating due to Pemex’s worsening finances, heavy reliance on federal help, and ongoing negative cash flow. Pemex bonds continued to fall on the news but then rallied as the federal government committed to back Pemex financially, without offering many details.  

As part of its plans to separate its operations in Mexico, Citigroup acquired Deutsche Bank's banking license in the country as it prepares for an IPO of its retail division. The acquisition will allow the bank to separate its consumer and small- and medium-sized enterprise business from its private and corporate banking business.

 

América Móvil announced that through its subsidiary América Móvil, B.V., it has acquired an additional 5.55% stake in the capital stock of Telekom Austria AG from a private investor. This acquisition increases AMX's shareholding from 51% to 56.55%.