Quintana Roo.- The issuing companies of the national stock market continue to show their nervousness about possible changes, especially in the legal field, said René Delgadillo, vice president of the Issuers Committee of the Mexican Stock Exchange (BMV).
The manager maintained that the companies listed on the Stock Exchange and the investors themselves – both national and foreign who invest in them – fear losing the legal security that the country offers until now, after in the last federal elections the party of the current Government, Morena, obtained the constitutional majority in Congress.
“Politically, we have recently witnessed an extreme scenario with a resounding winner. Economically today we face uncertainty, economic stability will depend on the reforms that are implemented. Investors fear constitutional reforms that could affect them,” said Delgadillo at the opening of the Broadcasters Forum 2024.
He stressed that there is a real risk that political decisions will begin to influence the economy, so investors must adapt to possible changes.
“The movement of the peso and the stock market is due to investors’ nervousness about the constitutional majority obtained,” he insisted.
He said that we must take into account the theory of evolution of Charles Darwin, who in the 19th century pointed out that the species that survive are not the strongest or the most intelligent, but those that best adapt to change.
He also paraphrased the American writer William Arthur Ward, pointing out that pessimists are those who complain about the wind; Optimists wait for the wind to change, while realists adjust their sails.
For the manager, we will have to wait to know the scope of the implementation of the so-called “Plan C” and especially the 2025 Economic Budget proposal in order for the country’s companies to adapt and adjust their plans and expectations to it.
They see continuity in the Government with optimism
For the Mexican Stock Exchange (BMV), it is necessary to look beyond the current volatility that the Mexican market is experiencing.
Marcos Martínez Gavica, president of the BMV, maintained that despite the fluctuations in the exchange rate and stock markets, the country has a stable macroeconomic scenario.
“It is clear to us and it gives us peace of mind that our macroeconomy is resolving and that is in the background, beyond a period of nerves and transitions,” he noted.
He pointed out that the exchange rate did not move due to a change in Government but because an adjustment was necessary, given that it was an overvalued currency.
“In fact, for several sectors of the country this exchange rate is much better, for exporters it is much better, because they were losing competitiveness,” he said.
He said that remittance-receiving households are also benefiting from a cheaper peso against the dollar.
He added that before the election, Claudia Sheinbaum’s economic sector team received members of the Mexican Stock Exchange, who presented an agenda to follow to make the Mexican stock market more competitive and attractive and showed openness.
He made it clear that there are profiles of investors who do not like sudden rule changes and are those who have overreacted to the electoral result, but this does not necessarily represent a generalization of investors who bet on the Mexican market.
[[AuthoritiesbattlewithnewSecuritiesMarketLaw[[¡BatallanautoridadesconnuevaLeydelMercadodeValores
The financial authorities have taken more time than originally planned to fine-tune the secondary regulation of the new Securities Market Law, as it is a meticulous job, said Martínez Gavica.
Martínez said that after the companies in the stock market sector worked together and with the financial authorities to prepare the secondary regulation, its publication now falls exclusively on the three institutions involved: the National Banking and Securities Commission, the Ministry of Finance and the Bank of Mexico.
“(Developing secondary regulation) is much more complex than each authority expected. The 3 that have to do with this have each been with their vision, with their own rules and their own interests, coordinating among themselves as they can all be okay,” he commented.
He added that the brokerage houses and stock exchanges can no longer do much more than what they have worked and contributed for several months to land the reform of the Securities Market Law in new specific rules, especially with regard to to simplified emissions.
“There are many people participating, there are many concerns, and it has taken time; I really hope that it really is an effective law,” he added.
Jorge Alegría, new director of the Mexican Stock Exchange, considered that the background of the new Law is good to facilitate access to more companies to the market.
He made it clear that, from his perspective, once the constant decline in interest rates begins there will be better conditions for new Initial Public Offerings to reach the market.
#Stock #Issuers #Resent #Legal #Uncertainty
