Mexico's main stock gauge finished higher on Wednesday, with the S&P/BMV IPC advancing 1.57% to close at a fresh record high. Broad-based sector strength from Industrials, Consumer Goods & Services and Consumer Staples underpinned the rally in late trading.
The session's top performer on the S&P/BMV IPC was Industrias Penoles Sab De CV (BMV:PEOLES), whose shares climbed 8.19% - a rise of 91.41 points - to finish at 1,207.85. Financials also contributed to the market's advance as Grupo Financiero Banorte (BMV:GFNORTEO) gained 5.21%, or 9.90 points, ending the day at 199.97. GCC SAB de CV (BMV:GCC) added 3.66%, a move equal to 6.94 points, to close at 196.48.
On the downside, Coca-Cola Femsa SAB de CV (BMV:KOFUBL) slipped 1.59%, a decline of 2.98 points, to trade at 184.27 at the close. Megacable Holdings, S.A.B. De C.V. (BMV:MEGACPO) fell 1.35% or 0.85 points to finish at 62.14, while Grupo Aeroportuario del Pacifico SAB De CV Class B (BMV:GAPB) declined 1.17% - 5.72 points - to 483.07.
Market breadth was tilted to the upside with 127 stocks rising versus 108 that declined, and 10 issues finishing unchanged on the Mexico Stock Exchange.
Two notable individual stock developments included Industrias Penoles and Grupo Financiero Banorte, both of which closed at all-time highs. Industrias Penoles rose 8.19% to 1,207.85, while Grupo Financiero Banorte advanced 5.21% to reach 199.97.
Commodities traded with mixed results. Gold futures for April delivery experienced a sizeable increase of 5.75%, a gain of 294.51, settling at $5,415.11 per troy ounce. In energy markets, crude oil for March delivery rose 1.81% or $1.13 to $63.52 a barrel. The April Brent contract climbed 1.55%, an increase of $1.03, to $67.62 a barrel.
Foreign exchange moves included a 0.38% uptick in USD/MXN to 17.19, while EUR/MXN declined 0.38% to 20.54. The US Dollar Index Futures was modestly higher, up 0.15% at 96.20.
Market context and implications
The rally was led by cyclical and consumer-oriented sectors, which helped lift the benchmark to a new peak. The advance in gold futures was notable for the size of the percentage move recorded on the session, and energy contracts also moved higher, reflecting gains across multiple commodity markets. Currency action showed a firmer dollar against the peso and a weaker euro against the peso on the day.