The Mexican Stock Exchange
The Mexican Stock Exchange (BMV: BOLSA) (in Spanish: Bolsa Mexicana de Valores, BMV) is Mexico’s only stock exchange. It is headquartered on the prestigious Paseo de la Reforma in central Mexico City. It is the second largest stock exchange in the Latin America after Brazil’s BM&F Bovespa. The total value of the Mexican Stock Exchange is estimated to be over US $600 billion.
The Mexican Stock Exchange actively trades stocks, debentures, debt instruments (government and corporate bonds), and warrants and other derivatives. Trading is conducted on a fully electronic trading system, called the BMV-SENTRA Equities System
Some Top listed companieson The mexico Exchange
América Móvil: Telecom
FEMSA: Conglomerate Grupo
Aeroportuario del Pacifico: Airports Grupo
Bimbo: Food Grupo
TV Azteca: Television,
Media Televisa: Television,
Media Telmex: Telecom
The Mexican Stock Exchange (BMV) i.e. Bolsa Mexicana de Valores –BMV The Mexican Stock Exchange (BMV) is a private institution that operates under a concession granted by the Ministry of Finance (SHCP), observing the Mexican Securities Law. Given the world tendencies and legislation changes, the BMV has already started its demutualization process, but up to this date its shareholders are authorized brokerage firms, which own one share each. The Mexican Stock Exchange (BMV) facilitates securities transaction process as well as the market development, fostering its expansion and competitiveness.
Mexico Stock Market IPC, 1997 – 2009
Economy of Mexico
The economy of Mexico is 11th to 13th largest in the world. Since the 1994 crisis, administrations have improved the country’s macroeconomic fundamentals. Mexico was not significantly influenced by the recent 2002 South American crisis, and has maintained positive, although low, rates of growth after a brief period of stagnation in 2001. Moody’s (in March 2000) and Fitch IBCA (in January 2002) issued investment-grade ratings for Mexico’s sovereign debt.
The economy contains rapidly developing modern industrial and service sectors, with increasing private ownership. Recent administrations have expanded competition in ports, railroads, telecommunications, electricity generation, natural gas distribution and airports, with the aim of upgrading infrastructure.
As an export-oriented economy, more than 90% of Mexican trade is under free trade agreements (FTAs) with more than 40 countries, including the European Union, Japan, Israel, and much of Central and South America.
Mexican peso The peso (sign: $; code: MXN) is the currency of Mexico.
The peso was the first currency in the world to use the “$” sign, which the United States dollar later adopted for its own use.
The peso was originally the name of the eight-real coins issued in Mexico by Spain. These were the so-called Spanish dollars or pieces of eight in wide circulation in the Americas and Asia from the height of the Spanish Empire until the early 19th century. After Mexico gained its independence in 1821, the new government continued the Spanish monetary system of 16 silver reales = 1 gold escudo, with the peso of 8 reales the largest silver coin
Investment Instruments for Foreigners:
ADR’s (American Depository Receipts): ADR’s are negotiable receipts for the securities of a foreign company, which are kept in the vaults of an American bank, allowing Americans to trade the foreign securities in the United States while accruing any dividends and capital gains. You may also buy Mexican mutual funds such as Fondo Mexico currently listed in the NYSE. • Mexican Stocks: nominal certificates representing one of the equal parts into which a company’s capital stock is divided, with rights and obligations on the part of the stockholders. They have no maturity date, and yields are determined by the payment of cash dividends and company’s overall performance. • Cetes (Federal Treasury Certificates): these are bearer credit certificates that oblige the Mexican federal government to pay the bearer the face value when the certificate matures. CETES are issued at terms of up to 2 years. The yield will depend on market conditions, and the principal is repaid in a single installment. The brazil stock market is also a big riser in the current world growth strategy and you can find more info on brazil stock market here
Where do you buy Mexican securities?
1. You may purchase ADR’s in the U.S. from any brokerage house or licensed broker dealer.
2. You may also buy individual shares and government issued bonds through a Mexican brokerage firm. Individuals interested in investing in securities listed on the Mexican Bolsa should contact any of the main Mexican brokerage firms or establish contact through a major U.S. brokerage firm. Commissions Commissions to Mexican brokerage houses range between 1-1.5% of the trade (buy/sell).