MARKETS
The S&P / BMV IPC fell 1.8% over the week amid decidedly negative sentiment for stock markets, though declining significantly less than US indices. Meanwhile, the Mexican Peso strengthened again, moving closed to the 20.0 psychological barrier, while the yield of the 10-year M-Bono remained stable at 9.51%.
The S&P / BMV IPC’s top stock gainers for the week were: PEÑOLES (+15.6%), GENTERA * (+5.1%) and KIMBER A (+4.0%). The main losers were: TLEVISA CPO (-13.3%), CEMEX CPO (-8.2%) and VESTA * (-7.8%).
The following macroeconomic indicators will be announced next week: 4Q24 Aggregate Demand and Supply and Private Spending.
LISTED COMPANIES
The BMV and S&P Dow Jones Indices announced preliminary results of the semiannual rebalancing for the S&P/BMV IPC, with no additions or removals taking place, contrary to expectations. Final results will be disclosed after the market close on March 14th and will take effect before the market opens on March 24th, 2025.
Traxión has raised a MXN$10 billion syndicated loan with a group of 5 banks which consists of a MNX$6.5 billion simple line of credit with maturity in 2030, a MXN$1.0 billion revolving line and a MXN$2.5 billion committed line of credit. The interest rate is 30-35 bps lower than that of the current syndicated loan. The initial disposition will amount to MXN$2.85 billion that the company will use to refinance outstanding debt, including the existing syndicated loan.
Volaris total passenger traffic grew 4.9% YoY to 2.2 million in February 2025. Domestic traffic increased 6.8%, while international traffic declined 0.1%. The stock plunged 17.2% over the week after not being included in the S&P / BMV IPC Index.
Fibra Inn’s ADR increased 9.7% YoY to MXN$1,983 in February, maintaining the favorable trajectory of the previous months. However, it was partially offset by a 2.5 PP drop in occupancy levels to 61.8%, we believe as a result of macroeconomic factors, being the smallest decrease in the last six months. RevPar rose 5.3% YoY to MXN$1,225, while hotel revenues were up 3.2% YoY to MXN$193.9 million, accelerating marginally from January.
Dine will invest MXN$10 billion in the construction of the Montage and Pendry hotels at its Punta Mita development in Riviera Nayarit. The Montage Punta Mita hotel, in partnership with LCA Capital, will have more than 140 rooms and more than 60 residences, while Pendry Punta Mita will offer more than 120 rooms and more than 30 residences.
KUO renewed its USD$300 million revolving credit facility, extending its maturity to 2030.
OTHER COMPANIES
Sempra and Mercado Libre announced US$6.95 billion in investments under the Plan México. (As in fact already revealed) Sempra will allocate US$3.55 billion to Baja California energy projects, generating 18,750 jobs, while Mercado Libre will invest US$3.4 billion, 38% more than in 2024, to expand AI, financial solutions, and logistics, adding 10,000 jobs.
Mabe will invest US$688 million over the next 3 years to increase production capacity, in innovation, design and development, and technology and sustainable processes, according to Pablo Moreno Cadena, Director of Corporate Matters.
Crypto trading platform Bitso announced that Mexican users increased 13% to 4.4 million in 2024.
Engel announced the inauguration of a new plant in Querétaro with an MXN$1.1 billion investment.
TRADE AND ECONOMICS
Moody’s changed its outlook on the Mexican banking system from “positive” to “negative” due to the decline in public spending and institutional changes in the country, as well as uncertainty surrounding trade relations with the United States.
President Claudia Sheinbaum announced she will decide on or after April 2nd whether Mexico will apply reciprocal tariffs in response to US tariffs on Mexican exports of steel and aluminum, and components that include them as inputs.
ANTAD’s SSS declined 1.7% YoY (self-service -1.8%, department stores -2.5% and specialized retail -0.5%), while total sales increased 0.7% (self-service +0.9%, department stores -1.3% and specialized retail +2.9%) in nominal terms in January.
On-line sales grew 20% to MXN$789.7 billion in 2024, according to the Mexican Association of On-line Sales. They represented 15.8% of total retail sales. The penetration of digital buyers was 84%, above the world’s average of 60%.
The Consumer Confidence Index (CCI) decreased 0.9 pts. MoM to 46.3 points in February, the weakest level since October last year. This took place as a result of a 0.9 pt. reduction in the “current situation of the country compared to the previous 12 months” component and a 0.4 pt. fall in the “expected situation of the country over the next 12 months” component. The CCI declined 0.8 pts. YoY.
Industrial production declined 0.4% MoM (vs. the consensus expectation of a 0.2% increase) in January, mainly due to a 1.8% contraction in mining and the 0.8% decrease in electricity, water and gas supply, INEGI reported. Industrial production fell 2.9% YoY (vs. the -1.8% consensus forecast) in January, mainly as a result of an 8.8% reduction in mining and a 6.7% fall in construction activity. This was the sixth consecutive month with an annual decline.
International visitors increased 18.6% YoY to 8.0 million in January, according to INEGI. Total spending rose 6.5% YoY to US$3.3 billion, with 94% coming from international tourists. However, average spending per visitor fell 10.2% YoY to US$416.41.
Banco de México’s international reserves reached a record level of USD$235.9 billion as of March 7th, after eight consecutive weeks of growth.
The Chamber of Deputies ratified Edgar Amador Zamore as Secretary of Finances and Public Credit with 419 votes in favor and none against. During his testimony, Mr. Amador stressed the importance of maintaining the health of public finances and promoting economic growth and social well-being. They also approved the appointments of Carlos Lezama Cotera as Undersecretary of Revenues at Hacienda and Roberto Fernández González as Treasurer of the Federation.
With 332 votes in favor and 82 against, the Chamber of Deputies approved the Secondary Laws of the Energy Reform which are aimed at strengthening PEMEX and the CFE.
Galia Borja, deputy governor of Banco de México, stated in a newspaper interview that the central bank will not modify its strategy despite U.S. tariff plans, and will remain focused on its inflation target. While calling the one-month delay positive, she acknowledged it will continue to create uncertainty until a final U.S. decision is made.
CETES auction: 28-day CETES -1 bps to 9.14%; 91-day CETES -13 bps to 9.02%; 175-day CETES -11 bps to 8.94% and 679-day CETES -11 bps to 9.28%.
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