Tulum, QR. The Mexican stock market and national and international investors did not overreact to the approval of the judicial reform by Congress, said Jorge Alegría, general director of the Mexican Stock Exchange (BMV) group.
“We did see in the past few weeks, the market showed it, some nervousness about the possible approval (of the judicial reform) and once it was approved the market has not reacted perhaps as negatively as was estimated, so in some segments it may be discounted and we will have to see how things go.
“We have a very specific function that we are fulfilling and once the reforms were approved we saw that the market did not have a major adjustment, we could even say that there was a return in prices, that does not mean a trend but there was no overreaction,” said the BMV director to the media after the inauguration of the 18th National Convention of the Mexican Association of Multiple Purpose Financial Companies of Mexico (Asofom).
Santiago Urquiza, president of Central de Corretajes, the firm that owns the Institutional Stock Exchange (Biva), believes that investors are currently in a period of “pause and reflection” to better understand the reform that was approved by the Senate in both its specific and general aspects.
“The reform has been controversial, we all know that, but now that it has been approved, let’s see how investors react. There has been an effort by the authorities to clarify the reform more thoroughly, but we are waiting to see the analysis of national and international investors once this week of approvals is over.
“Let’s say that it is a space for reflection and to better understand what this reform means… There has been a statement from investors out of concern about the reform, but once we have a good look, let’s say that it is a moment of pause, of reflection, and of better understanding the reform,” said the president of Cencor.
Asked whether a halt to investments due to the approval of the judicial reform could be ruled out at this time, Alegría, from the BMV, responded that “we must consider that there are several variables, not only Mexico with elections and reforms, there are elections in the United States, there are monetary policy decisions, and all of that influences the behavior of the market, whether it goes up or down.”
Urquiza added that the stock market hopes that “by better understanding the reform there will be a need for investment in the country, Mexico can hardly meet its objectives of justice, starting there, and support for social programs if there is no investment, we must ensure that Mexico continues to be an attractive pole for investment or for the nearshoring”.
#Markets #overreact #approval #reform #BMV
– 2024-09-22 02:01:59
