BMV falls more than 4% after Morena’s victory; some stocks fall more than 10%

Mexico’s stock exchanges are falling sharply on Monday morning. Local indexes are down after a preliminary landslide victory for Morena at the polls on Sunday, in the largest election in our country’s history.

The leading index of the Mexican Stock Exchange (BMV), the S&P/BMV IPC, which groups the most traded local stocks, falls 4.15% to 52,888.14 points. The FTSE BIVA, of the Bolsa Institucional de Valores (Biva), lost 4.14% to 1,080.09 points.

Within the benchmark index, all stocks are trading with losses. The securities of Regional bank, better known as BanRegio, lead the fall with a 10.87% drop to 131.30 pesos, followed by those of BanBajío, with 10.25% to 52.62 pesos.

Investors seem concerned about Morena’s victory at the polls, as in addition to the presidency for Claudia Sheinbaum, the process gave Morena and its allies a qualified majority in Congress to push initiatives.

“We expect a dynamic and volatile session in the Mexican stock market. Market participants assimilate yesterday’s electoral events,” said in a report for the opening the capital desk of Vector Casa de Bolsa (Biva), loses 4.14% to 1,080.09 points.