Weekly Mexico Market Monitor 

Weekly Mexico Market Monitor 

Friday AM, October 6, 2023 



The FTSE-BIVA index closed on October 5 at 1,022.59 down significantly from its September 28 close at 1,064.16. 

  The MXN/USD exchange rate weakend sharply to 18.27 pesos to the dollar on October 5, from its close of 17.54 pesos on September 28 

  The Mexican 10-year bond (2031) closed on Thursday with a yield of 9.873%, slightly down from a yield of 9.943% on September 28 

  The FTSE-BIVA Top Stock Gainers for the week were: NEMAK (+4.17%), QUALITAS (+3.49%) and AXTEL (+2.74%) and the Biggest Losers were: OMA (-28.69%), GAP (-25.27%) and ASUR (-19.50%). 



 ASUR, GAP and OMA were informed by the Federal Civil Aviation Agency (AFAC) of immediate changes to the tariff base regulation in their concession deeds, even though by law modifications should be mutual, not unilateral. The three stocks dropped by 20%-25%, bringing the rest of the market and the peso down as concerns about the rule of law and investment protection rose. Details on the new tariffs were still forthcoming.

 Cemex placed $6 billion pesos of sustainability-linked long-term notes; a transaction which represents a return to the Mexican debt market after a 15-year absence. The proceeds will be used to pay down debt and support Cemex’s growth strategy. 

 Abbott, the American pharmaceutical company, will develop a cardiovascular device manufacturing facility in Querétaro, investing US $200 million in the project. The 20,000 m2 facility will be operational by mid-2025. 

 The Home Depot will continue with its expansion strategy in Mexico and invest $3.7 billion pesos in the country during 2024, expanding upon its 136 locations.  

 Vitro, a leading manufacturer of glass for the automotive and construction industry, obtained a US $490 million joint financing to refinance part of its debt. Banorte, Scotiabank and BBVA participated, and the financing has a maturity of five years. 

 Aeromexico and Delta Airlines plan to grow their flight offerings between Mexico and the US by 30% starting next year. The codeshare alliance will offer more than 90 daily flights between the two countries, connecting some 60 routes. 

 Mitsui & Co. Infrastructure Solutions opened its first photovoltaic park called Mitre Calera Solar, which is located in the state of Zacatecas and required an investment of US $100 million. 

 Mexican airport operator Grupo Aeroportuario del Centro Norte, known as OMA, reported that terminal passenger traffic at its 13 airports increased 16.6% in September 2023, as compared to September 2022. Domestic traffic increased 16.0%, and international traffic increased 22.3%. 



 A new poll by respected Buendia & Marquez and newspaper El Universal revealed that Sheinbaum currently holds 50% of the voting preferences polling well over Galvez’s 20%. This poll assumed a four-way race, including Nuevo Leon Governor Samuel Garcia with 7% of the vote, who has still not announced his intention to run, alongside independent candidate Eduardo Verastegui with 4%. 

 Following statements made by President López Obrador that 10,000 people were reaching the border daily, Biden announced that the United States would be building a new section of border wall in Starr County. This was a significant step as it marks Biden going back on his election pledge to prevent any new wall construction.  

 AMLO also critiqued a new U.S. funding bill which included additional support for Ukraine, calling it ‘irrational’, and suggesting that such funds should be directed at Latin America. This follows critique of a Russian military unit’s presence at a state parade for Mexico’s Independence Day. 



 The IMF significantly raised Mexico’s growth forecast for 2023, increasing its July forecast of 2.6% to 3.2%. This was due to strength in private consumption, services, construction and automotive production. For 2024, according to the monthly survey prepared by Banco de México, analysts also increased their forecast from 1.6% a 1.9%, signaling strong confidence in the Mexican economy. 

 According to Inegi, in July, gross fixed investment and private consumption rose again to record levels, reaching 117.7 units and 108.2 units respectively. However, both showed signs of slowing down, as gross fixed investment only rose 0.48% over June, its smallest increase in 12 months, while consumption rose by 0.04% monthly, the second slowest rise in five months. 

 Inegi data revealed that Chihuahua, Coahuila, Nuevo León, Baja California and Guanajuato contributed more than 52% of Mexico’s exports in the second quarter. On the other hand, Colima, Hidalgo and Aguascalientes grew the most in this period. 



05/10/2023, BBC News, Kathryn Armstrong

05/10/2023, The Washington Post, Christopher Sherman and Alicia Fernández 

04/10/2023, Reuters, Jose Luis Gonzalez and Brendan O’Boyle 

04/10/2023, Los Angeles Times, AP

03/10/2023, The Guardian, Richard Luscombe

04/10/2023, CNN, Rafael Romo

03/10/2023, Reuters, Nell Mackenzie, Carolina Mandl and Marc Jones   

02/10/2023, Reuters, Staff

02/10/2023, El Pais, Alejandro Santos Cid  

03/10/2023, The New York Times Magazine, Nicholas Casey    

03/10/2023, Forbes, Nathaniel Parish Flannery (Opinion)

29/09/2023, Washington Post, Max Boot (Opinion)

01/10/2023, El País, Arnoldo Kraus