The Mexican Stock Exchange fell to its worst level in more than eight years. In the last 14 days, the weight has accumulated a loss of 26 percent.
The Mexican peso depreciated on Friday for the fourteenth consecutive day, after the central bank announced a surprise cut in the key interest rate, while the stock market ended at levels not seen since October 2011.
The Banco de México lowered its rate by 50 basis points in an off-calendar decision, taking into account the risks derived from the coronavirus outbreak in the economy, markets and inflation.
The currency ended the session at 24.42 per dollar, with a decline of 1.7 percent against the reference price of Reuters Thursday, in the midst of growing concerns about the spread of the coronavirus.
“Right now the markets don’t care about anything, they are scared. It doesn’t matter if you move the rate or not, ”said Jorge Gordillo, head of analysis at CI Banco.
In the last 14 days, the weight accumulates a loss of 26 percent.
The referential index S & P / BMV IPC, made up of the shares of the 35 most liquid firms in the market, sank 2.49 percent to 34,269.51 points, its lowest level of closure since October 17, 2011.
The titles of the financial group Banorte were the ones that most drove the disaster, with 5.08 percent less to 66.73 pesos, followed by those of the retailer Wal-Mart de México, which subtracted 3.80 percent to 51.39 pesos.
In the week, the stock market fell 10 percent, its worst performance since the financial crisis of 2008.
In the debt market, the yield on the 10-year bond fell 77 basis points to 7.42 percent, while the 20-year rate fell 43, to 8.13 percent. (Rts)
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