The Mexican stock market
What is the benchmark index in the Mexican stock market?
The S&P BMV IPC, which is supervised by the S&P Dow Jones Indices and BMV (the Mexican stock exchange), is the main stock market index in Mexico
To understand how the BMV index works we can make a simile with the SP 500, which is an index that includes the 500 largest companies in the United States. The BMV index is similar to this one for Mexico. The term ‘IPC’ is an abbreviation of the price and quotation index and the BMV index comprises the most liquid and largest capitalization stocks that represent crucial sectors of the Mexican economy
Traders trust the SP BMV IPC index to evaluate the economic conditions of the Mexican stock market and make solid investments within the Mexican stock market, thanks to its broad coverage and reliability.
Let’s talk a little about the history and development of the SP BMV IPC index
The BMV IPC index was first introduced in 1978 and has become the standard for the stock market in Mexico, as we will see below. Its composition grew over time to provide the investor with a representative sample of the entire economy.
In recent years this index has grown more than 200% as we can see in this graph.
The BMV and the S&P Dow Jones index company signed a licensing agreement in May 2015, with the aim of ensuring that the existing product range complied with international standards and was accessible to global markets.
What is the index like historically?
The SP BMV IPC index has been a reflection of the economic fluctuations and significant events that have occurred in Mexico throughout its existence.
Investor confidence was also boosted by the implementation of modern trading systems and regulatory changes
The SP BMV IPC index is a defining characteristic of Mexico’s economic stability and a vital instrument for investors in the next emerging market
The composition of the participants in the index may vary each quarter or year depending on a board of directors of the BMV group who consider which values best reflect the shareholders of the Mexican stock market.
Discretionary consumption, Industry, Communication services, Royal State, Health care, Discretionary consumption, Consumer staples, Materials
In this link to the website of the Mexican stock exchange you can see the list of all the shares that make it up.; https://www.bmv.com.mx/.
Disclaimer: This content is for educational and informational purposes only and should not be considered as financial advice. Please consult with a qualified financial advisor before making any investment decisions. Trading and investing involve significant risks, and you should carefully evaluate your financial situation and risk tolerance before proceeding.
Borja salvador
Senior Market Analyst at Tradeview Markets
email: bsalvador@tvmarkets.com
