Peso loses but scores sixth weekly gain; Stock market extends negative streak

 Peso loses but scores sixth weekly gain; Stock market extends negative streak

© Forbes Mexico

Reuters.- The Mexican peso depreciated on Friday, but registered its sixth weekly rise, while the stock market extended a losing streak to five weeks amid concerns about the economic recovery and an increase in COVID-19 infections in Europe.

The local currency was trading at 21.1040 per dollar near the end of the session, losing 1.21% against the Reuters reference price on Thursday, when it posted its best closing level since March 10, at 20.8510 units.

The peso was shaping up to post a weekly gain of around 0.75%.


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The local currency hadn’t seen so many weekly gains in a row since a nine-week winning streak it made between December 2018 and January 2019.

Read also: Moody’s expects the Mexican economy to rebound 3.7% in 2021

“Technically, it is already at oversold levels, which would indicate a setback in the short term, however, the excess of dollars in the world and the levels of the Mexican rate, which are still attractive for investors, have kept the peso revalued. in these weeks, “said Intercam analysts.

The benchmark S & P / BMV IPC index, made up of the shares of the 35 most liquid firms in the market, lost 0.31% to 36,017.35 points. The weekly loss was 0.87%.

The high volume of 486.9 million securities traded in the local market was due to the so-called “Quadruple Witching Day”, with maturities of futures and options on indices and shares.

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Among the shares that gained the most in the day were those of Banco Santander México -almost 6 %-, despite the fact that as of Monday they will no longer belong to the leading index, as well as the Regional titles, as part of a rebalancing of the indicator that is carried out every six months.

In the local debt market, the 10-year bond yield rose four basis points to 5.69%, while the 20-year rate added two to 6.62%

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