In Mexico, the MSCI Mexico index rose 14.2% and the Mexican peso appreciated 1.7% in October to 19.81 pesos.
Formerly known as Morgan Stanley Capital International, MSCI became independent in 2007.
While it is a financial services firm that markets research and analysis tools for institutional investors, it leads the world in the market indexes it publishes under the MSCI brand.
The best known of these indexes -the MSCI World- is an index weighted by the market capitalizations listed in some twenty economically developed countries. It comprises 1,600 names representing the main sectors of the world economy.
Among the other MSCI indices, the MSCI Europe index reflects the performance of the 15 main markets of the European Union.
This index is composed of 846 listed companies from 24 emerging countries that have been chosen on the basis of their levels of economic development, their size, their liquidity conditions and the accessibility of their markets.
Specifically, the index includes China, Greece, Mexico, Peru, Poland, Qatar, Turkey and South Africa.
Mexico’s preliminary GDP for the third quarter of 2022 came in above estimates, reporting an annual increase of 4.3 percent.
Mexican listed companies reported positive financial results for Q3 2022, with strong sales growth of 14.2 percent versus Q3 2021, with a slight increase in Ebitda of 0.3 percent, as high global inflation affected margins.
As a result of earnings growth and positive operating performance, MSCI Mexico presents an attractive valuation, trading at a P/E ratio of 13.6x trailing 12-month earnings and an EV/Ebitda ratio of 6.3x, below its five-year averages of 18.9x and 7.6x, respectively.
Global equity markets posted mixed performances in October 2022.
The MSCI World index was up 7.1%, while the MSCI Emerging Markets index was down 3.2% for the month, hurt by negative returns from China.
The DJIA and S&P 500 posted returns of 14.0 and 8.0%, respectively, while the interest rate on the 10-year Treasury note rose 22 basis points to 4.05% and the U.S. dollar depreciated 0.5% (as measured by the DXY4 index), during October 2022.