The Mexican Stock Market falls 0.63% and closes with a weekly loss of 0.09%

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Mexico City, Oct 1 (EFE) .- The Mexican Stock Exchange (BMV) fell 0.63% this Friday, in its main indicator, to settle at 51,060.05 points, and due to this it closed with a weekly loss 0.09% and adds five consecutive weeks of contractions.

The Index of Prices and Quotations (IPC) -main indicator of the Mexican market- registered a weekly loss of 0.09%, “spinning five weeks of consecutive contractions in which it accumulates a decline of 2.63%,” explained to Efe the Analyst at Banco Base Karla Bajos.

He said that from a technical point of view, the index continues to respect the technical level of 52,000 points, which acted as resistance for several months.

“To show a change in the upward trend, the CPI would have to consistently exceed that level,” he added.

The specialist highlighted that within the index, weekly gains were recorded in 17 of the 35 main companies included and the issuers with the best performance were Banco del Bajío (+ 5.47%), followed by Orbia (+ 4.77%) and Banorte (+3.97%).

He recalled that this Friday the president of Mexico, Andrés Manuel López Obrador, announced that he sent a reform of the electricity industry to Congress, with the aim of guaranteeing low energy prices in Mexico.

According to the president, energy prices should be controlled by strengthening the Federal Electricity Commission (CFE).

Given this, Bajos considered that the approval of said reform would have several negative repercussions including: “higher costs for end users, pressure on public finances, possible cuts to the credit rating, capital outflows, lower fixed investment and therefore lower long-term economic growth. “

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With the decline on this day, the Mexican index has a positive accumulated yield so far this year of 15.87%, supported by the economic recovery.

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