The Mexican Stock Exchange reported its worst month since August 1998.

The Mexican stock exchange reported its worst month since August 1998, accumulating a monthly loss of 29.52%, influenced by expectations that the central bank’s rate hike cycle would continue.

The country’s main stock exchange index, the S&P/BMV IPC, ended the month narrowing 6.70%, down 3,225.1 units from 48,144.33 to 44,919.22 points.

Independent analyst Carlos Hermosillo explains: Here it must be taken into account that he has two specific fronts that are already changing. These are the level of interest rates and the shrinking of central bank balance sheets (so-called QE). The problem is that this happens at the same time that indicators of economic dynamism point to a severe weakening, which could deepen in monetary strategy. “

Among the companies listed on the stock exchange, the three worst-hit yields were media station Televisa, down 21%, mining company Industrias Peñoles, down 19.26%, and telecommunications service provider Telesites. It fell 15.93%.

By contrast, the top-earning stocks were those of concession operator Pinfra, up 6.98%, OMA Airport Group, up 6.10%, and poultry producer Industrias Bachoco, up 4.45%.

“Mexico’s capital markets are likely to recover over the course of this year, but they have been unremarkable and largely undriven by excessive price cuts. This suggests that inflation has peaked. It will depend on the moment it is confirmed and this will give us a clearer picture of how far interest rates will go in the US and therefore in Mexico, ”the expert added.

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