Additionally, the appointment of former Mexico City mayor Marcelo Ebrard as foreign minister was also widely received as a promising signal given the importance of US-Mexico relations to the economy.
Investor Interest Returns to Mexico
Consequently, more are turning back into the beleaguered market. Actinver SA analyst Enrique Mendoza pointed out that the stocks that most benefited are those that saw sharp drops earlier in the year and look attractive for returning funds, reports Andrea Navarro for Bloomberg.
“Capital is returning to the stock exchange and it’s picking names that had been too castigated,” Mendoza told Bloomberg. “Gentera had been crashing and stabilized in the past few months, making for a very low valuation.”
Morgan Stanley has even upgraded the Mexican market to “overweight” as it looks attractive in absolute and relative terms. The analysts also argued that the Mexican economy continues to expand at a moderate pace and the outlook for corporate earnings growth in 2018-2019 remains strong.
For more information on the Mexican markets, visit our Mexico category.