Weekly Mexico Market Monitor 

Weekly Mexico Market Monitor

Friday AM, October 27, 2023



The FTSE-BIVA index closed on October 26 at 1,018.02 slightly up from its October 19 close at 1,010.67.

The MXN/USD exchange rate strengthened to 18.15 pesos to the dollar on October 26, from its close of 18.32 pesos on October 19.

The Mexican 10-year bond (2031) closed on Thursday with a yield of 10.11%, slightly up from a yield of 9.992% on October 19.

The FTSE-BIVA Top Stock Gainers for the week were: GRUMA (+13.01%), GCC (+9.94%) and ARCA (+8.34%) and the Biggest Losers were: ALPEK (-21.15%), CUERVO (-17.82%) and ORBIA (-16.21%).



Third quarter reports came in, and were weaker than second quarter’s, even though consumption and nearshoring orientated companies continued to do well. Grupo Alfa‘s quarterly income fell to US $4.2 billion (from US $4.85 billion in 3Q22), due to a 34% drop in Alpek’s sales, whose stock dropped on results (as did Orbia’s). Sigma Alimentos’ revenues by contrast increased by 18%. Traxión continued to benefit from nearshoring with consolidated revenues reaching Ps. 6.389 billion, an increase of 18.9% compared to the same quarter of the previous year. Additionally, EBITDA grew by 25.7%, reaching 1.174 billion pesos. Walmart de México y Centroamérica had a strong quarter and increased its operating cash flow and revenues by 8.5% and 7.7%, respectively. Consumer titans Alsea, Arca and Bimbo once again reported stand-out results. Becle failed to meet analysts’ expectations, with a 58.8% decrease in the company’s EBITDA compared to the same quarter of the previous year, due to pressures from strong FX and weak sales in Mexico. Cemex’s strong year continued, reporting a 16% increase in net sales and a 40% increase in EBITDA in the third quarter of the year, compared to the same period of last year. Rotoplas dropped its sales estimate for the end of the year and projected an 8% decline, after another difficult quarter. Grupo Televisa reported another weak quarter, as cable and SKY dropped subscriptions, with the stock dropping 80% below its 2021 high.

With an investment of US $133 million, Industria Mexicana de Coca-Cola will expand Jugos del Valle-Santa Clara’s plant in Lagos de Moreno, Jalisco.

Xiamen Intretech is investing US $210 million in a new plant in Monterrey. The Chinese company specializes in developing technologies for various sectors, including the automotive and augmented reality industries.

Jabil, the electronics manufacturing company, reported that Mexico is the second largest contributor to overall revenue, with revenue increasing from US $4.3 billion in 2021 to more than US $6 billion in 2023.

Grupo México Transportes announced an investment of US$ 530mn for 2024. Resources will be used for the construction of works such as yards and terminals, maintenance, and the acquisition of railroad equipment.

Fibra Uno, the largest publicly listed real estate investment trust, will transfer 50% of its dollarized debt to a new real estate trust, named Fibra Next. There it will concentrate its industrial properties and target properties poised to benefit from nearshoring.

In April, Vitro closed a contract with US-based First Solar to supply glass faceplate for solar panels. Now, the company is almost doubling that deal: an extension to the original contract will generate estimated sales of US $1.3 billion over the next 10 years (in addition to the US $1.2 billion projected in the first agreement).

This year, Chedraui will add 50 new Supercito branches – its mini-supermarket format – to reach 113 locations. By 2024, they plan to open 100 more, and in 2025, another 200.


Hurricane Otis, a Category 5 storm, landed in Acapulco, resulting in at least 27 deaths and devastating infrastructure and homes across the area. More than 500,000 homes and businesses lost power across the Guerrero state and AMLO commented that “In all of Acapulco there is not a standing [electric] pole.” 80% of Acapulco’s hotels are also said to have been damaged, and 10,000 soldiers have been deployed for the relief effort.

Morena continued to fast track a reform that will remove funding from the judiciary, targeting the 13 trusts of the Judicial Power of the Federation (PJF) which hold employee benefits to an amount of 15 billion pesos. In response, 500,000 workers at federal courts have been striking this past week.



In the first half of October, inflation grew at an annual rate of 4.27%, its lowest level since March 2021, according to data from Inegi. Electricity was the key driver of inflation, rising by 19.23% for the period. Furthermore, the National Consumer Price Index in the country increased by 0.24% in the first half of October compared to the previous 15 days, the most modest advance for a similar period since 2005.

According to a BBVA study, in the first half of the year, mortgage loans in Mexico contracted 4.1% in number of loans and 8.6% in amount. It found that demand for credit from commercial banks and Fovissste has fallen, while only Infonavit saw a 5% increase in the number of loans and 11% in the amount of loans.

According to CONSAR data, in the first three quarters of the year, the operating profit of the Afores increased 20%, reaching $12,360 million pesos. This would be equivalent to a modest operating profit of $193 pesos per managed account.



26/10/2023, Wall Street Journal, Anthony Harrup

25/10/2023, Smithsonian, Julia Binswanger

24/10/2023, Reuters, Staff

25/10/2023, Reuters, Staff

24/10/2023, Bloomberg, Maya Averbuch

23/10/2023, The New York Times, Zolan Kanno-Youngs and Emiliano Rodríguez Mega

23/10/2023, The Washington Post, The Post (Podcast)

23/10/2023, Reuters, Stefanie Eschenbacher and Adriana Barrera

23/10/2023, El País, Isabella Cota

23/10/2023, Forbes, Jorge Gonzalez Henrichsen

22/10/2023, NPR, Associated Press

22/10/2023, Bloomberg, Carolina Millan

20/10/2023, El País, Karina Suarez