MARKETS
The S&P / BMV IPC was up 0.7% over the week helped by rate cuts, Walmex’s investment program and notwithstanding 25% tariffs imposed by the US Government on the vitally important car and car par sector. Meanwhile, the Mexican Peso lost 0.7% to close at 20.30 following the tariff news, and Banxico’s 50 bps interest rate reduction, while the yield of the 10-year M-Bono advanced 1 bps to 9.42%.
The S&P / BMV IPC’s top stock gainers for the week were: WALMEX * (+6.6%), PEÑOLES * (+6.5%) and TLEVISA CPO (+4.6%). The main losers were: BOLSA A (-3.1%), LACOMER UBC (-3.0%) and OMA B (-2.6%).
The following macroeconomic indicators will be announced during the week: Gross Fixed Investment, Consumer Confidence and Business Confidence.
LISTED COMPANIES
Walmex announced a big MXN$41.8 billion Capex program for 2025, up 20% from the previous year. The company plans to allocate 41% to existing store renovations including omnichannel functions, 30% to new store openings (the company plans to open 1,500 new stores over the next 5 years; new stores will contribute between 1.5-1.7% to total sales in 2025), 18% to supply chain expansion and automation, and 11% to eCommerce and technology. These investments are aimed at enhancing customer experience, strengthening growth foundations, and supporting long-term value creation.
Arca Continental announced a MXN$18 billion investment for 2025 to boost production and distribution, launch new categories, digital tools, sustainability efforts and creation of shared value. Half of such investment will be allocated to Mexico and the rest to the US and South America.
Alfa announced it received authorization to list Controladora Alpek’s shares on the MSE, moving closer to completing its Unlocking Value strategy. Alfa shareholders as of April 4th will receive one Controladora share for each Alfa share they own. Controladora Alpek will begin trading on April 7th. The company also announced changes to its Board of Directors as it shifts focus to its processed food company Sigma. Seven members from Sigma’s advisory board joined Alfa’s board, replacing six outgoing members. New directors include María Teresa Arnal, Diego Calderón Rojas, Brenda Garza Sada, Eduardo Padilla Silva, Anthony Pralle, Alejandro Ruiz Fernández, and Ricardo Saldívar Escajadillo. The company’s shareholders also approved the payment of a US$0.015/share cash dividend and a MXN$5.8 billion share buy-back reserve.
Fibra Mty announced a US$105 million agreement to acquire a Class A industrial property in León, Guanajuato, fully leased to Mercado Libre. The facility spans 82,250 m² of GLA on a 183,940 m² site and aligns with the trust’s strategy to grow its logistics exposure. The transaction received approval from the Technical Committee and COFECE and remains subject to final agreements. On the other hand, FMTY received a P$93.4 million VAT reimbursement from fiscal authorities related to the Aerotech portfolio acquisition.
Grupo Aeroportuario del Pacífico refinanced its USD$40 million credit line with Banamex, originally due last March 21st, extending the maturity by six months. The loan carries a variable interest rate of SOFR plus 25 basis points, with monthly interest payments and principal due on September 18th, 2025.
Norte 19’s ADR increased 9.1% YoY to MXN$1,417, which exceeded the last twelve-month inflation rate by 5.3 PP, primarily driven by hotels in the northern and metropolitan areas. However, this was partially offset by a 3.5 percentage point fall in occupancy levels to 53.4%, which we believe was due to macroeconomic weakness. RevPar thus rose 2.3% YoY to MXN$756, and total revenue was up 2.3% YoY to MXN$320.1 million.
Axtel announced a US$39 million partial loan prepayment using internal cash, bringing total prepayments to US$75 million and cutting debt by 13%, with estimated annual savings of US$6 million. Net leverage dropped from 3.6x in 2022 to 2.5x at the end of 2024.
Next April 4th, Financiera Independencia will redeem 52.7% of its outstanding 10.0% Step-Up Senior Notes due 2028 at 100% of face value plus accrued interests. The company also announced it has signed a new MXN$150 million credit line with BBVA maturing in March 2028.
Aleatica received CNBV approval to delist its shares from the Mexican Stock Exchange on March 26th, 2025, and set up a trust to buy remaining shares at MXN$96.63235 each. The trust will operate for up to six months.
Alsea’s Starbucks unit launched a pick-up service through Uber Eats allowing users to order and collect items at nearby stores without extra charges.
OTHER COMPANIES
Ualá raised an additional USD$66 million as an extension of its Series E financing round, the largest private investment in Latin America in the last three years. TelevisaUnivision participated through its media-for-equity program for about 20% of the extension, joining previous investors like Allianz X and the SoftBank Latin America Fund.
ADM inaugurated a new US$39 million pet food plant in Yecapixtla, Morelos. The facility includes three automated production lines and is one of ADM’s most modern in Mexico. The company aims to meet growing demand in a market with over 80 million pets and strengthen its position as one of the country’s top two pet food producers.
Digital health membership platform Mutuus raised US$3.2 million in an investment round to expand its operations across Latin America. The startup will strengthen its AI-driven platform, expand B2B services, and grow hospital alliances. It serves over 13,000 members and processed 4,000 bills across 300 hospitals.
TRADE AND ECONOMICS
The US Government confirmed the implementation of 25% tariffs on all automobile imports from April 3rd and all autopart imports no later than May 3rd. Tariffs on imported vehicles complying with the USMCA and certifying their US content will only apply on their non-US content.
Banco de Mexico cut is key interest rate by 50 bps to 9.0%, as widely expected according to the last Citi Mexico Expectations Survey. The decision was unanimous by the five voting members.
Inflation was 0.14% in the first half of March, according to INEGI, which was slightly lower than the 0.17% consensus forecast of the last Citi Mexico Expectations Survey. The core inflation rate for the period was 0.24% (merchandise +0.25%, services +0.22%), matching the consensus. The last 12-month inflation rate stood at 3.67% while the last 12-month core inflation rate was 3.56%, from 3.77% and 3.61%, respectively, in February.
The IGAE decreased 0.2% MoM in January (seasonally adjusted), mainly due to a 0.4% drop in secondary activities, while tertiary activities remained flat and primary activities rose 3.1%. The IGAE fell 0.1% YoY (original data) as a 2.9% fall in secondary activities was partially mitigated by the increases of 14.8% in primary activities and 0.8% in primary activities.
Retail sales were up 0.6% MoM (seasonally adjusted) in January, according to INEGI, which was above the 0.1% consensus forecast. Retail sales advanced 2.7% YoY (original data), also beating the +1.1% consensus expectation.
Mexico recorded a US$2.2 billion trade surplus in February, according to INEGI. Exports fell 2.9% YoY to US$49.3 billion (non-oil -1.7% and oil -24.4%), while imports dropped 8.3% YoY to US$47.1 billion (non-oil -8.6% and oil -3.0%).
CETES auction: 28-day CETES -8 bps to 9.02%; 91-day CETES -11 bps to 8.89%; 175-day CETES -15 bps to 8.84% and 721-day CETES -25 bps to 9.03%.
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