Saturday , June 19 2021

Pesos and BMV are falling after the fall in oil prices



The seat of the Mexican Stock Exchange, in the image file. Xinhua Picture© Provided by DEMOS Media Development
The seat of the Mexican Stock Exchange, in the image file. Xinhua Picture

The stock exchange and the Mexican stock market fell on Tuesday in line with other markets after the collapse of oil prices, while uncertainty persists in connection with the actions of the government of President Elect Andreas Manuel López Obrador and his party in Congress,

Index S & P / BMV IPC index lost 2.05%, up to 42,421.33 points, with a turnover of 216.7 million shares. The local square has achieved the lowest closing level since February 2016.

The local currency traded 20.4760 for a dollar at 15:20 local time (20:20 GMT), with a loss of 0.56% or 11.50 cents, compared with 20361 references reuters Monday

The local currency lost in value in the initial period to 20.58 units, the worst since 19 June.

A recently elected government announced the cancellation of the construction of a new airport in Mexico, and the party Andrés Manuel López Obrador, Morena, presented a bill limiting the commission collection from banks. Both messages have reached the local markets.

Analysts said that they were not able to dispel the fears and loss of confidence after doubts arising from the decision of the next administration.

"We have not yet managed to remove the negative stigma of what has happened recently with the government and the new Congress," said CI Banco analyst James Salazar. "If BdeM raises interest rates (on Thursday), it would be the only thing that could change the trend," he added.

The Bank of Mexico would increase the reference interest rate to the highest level since August 2008. In its statement on Thursday, the weakening of the peso against the dollar and other pressures on local inflation were strongly weakened. reuters.

In the local debt market, the yield on 10-year bonds increased by 14 basis points to 9.04 per cent, while the 20-year rate added 19 to 9.30 per cent.

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