Mexican companies affected by peso appreciation

Mexico‘s listed companies reported their fourth quarter 2023 financial results, which were affected by the appreciation of the Mexican peso.

This exchange rate had a negative effect on export and foreign sales revenues when translated into local currency.

As a consequence, the companies had a decrease in their sales and Ebitda of 2.4% and 4.9%, respectively, versus the fourth quarter of 2022, according to information released by The Mexico Fund.

Two context indicators: the Central Bank of Mexico (Banxico) kept its overnight interest rate unchanged at 11.25%, while Mexico’s GDP reported an annual increase of 2.5% during the fourth quarter of 2023, resulting in an expansion of 3.2% during the full year 2023, above its original estimates. 


At the same time, S&P ratings affirmed Mexico’s credit rating at ‘BBB’ with a stable outlook supported by stable macroeconomic conditions, moderate inflation rates and the expectation that the next government will maintain cautious macroeconomic policy.

Mexico’s publicly traded companies include: América Móvil, Grupo Bimbo, Grupo Aeroportuario del Pacífico, Grupo Financiero Banorte, Grupo México, Fomento Económico Mexicano (FEMSA), Cemex, Wal-Mart de México, Grupo Elektra and Gruma.

In the broader picture, global equity markets posted positive returns during February 2024. 


MSCI World index and the MSCI Emerging Markets index rose 4.1 and 4.6%, respectively, during the month. 

On the other hand, the DJIA and S&P 500 rose 2.2 and 5.2%, respectively, while the 10-year Treasury bond yield increased 34 basis points to 4.25% and the U.S. dollar appreciated 0.9% (as measured by the DXY4 index) during February 2024. 

In Mexico, the MSCI Mexico index declined 2.6% and the Mexican peso appreciated 0.9% during the month to 17.05 pesos, while the Fund’s NAV declined 3.2%, below its benchmark.


Redacción Opportimes

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