The Mexican Stock Exchange (BMV) i.e. Bolsa Mexicana de Valores –BMV

Investors have long sought high risk/high reward opportunities in emerging markets and Mexico has been no exception. As a major U.S. trading partner rich in energy, raw materials and relatively cheap labor, the republic to the south has many allures

The Bolsa Mexicana de Valores –BMV is Mexico’s only stock exchange. The Bolsa Mexicana de Valores –BMV is the second largest Stock Exchange in Latin America. São Paulo Stock Exchange i.e. Bolsa de Valores de São Paulo is located in Brazil. It is the largest stock exchange in Latin America and the eighth largest stock exchange in the world

One way to bet on Mexico while shedding some risk is to buy T. Rowe Price Latin America (PRLAX), a top-rated fund that has returned an average annual 20.8% over the last five years, good enough for the top spot in its Morningstar category. Those returns were primarily primed by a 64% weighting in Brazil, including a large position in oil company Petrobras (PBR:40.57, -0.91, -2.19%). The fund also has exposure to Mexico (22%), Chile (4%) and Peru (4%).

Another option is the Vanguard Emerging Markets Stock fund (VEIEX). The index offering owns nearly 800 companies spread out in over two dozen emerging markets. It has a 5% stake in Mexico and has positions in South American countries, too. It has returned an average annual 7.8% over the last decade, and charges a 0.32% expense ratio. That’s one of the cheapest fees you’ll find in the space.

Mexico Securities, Investments and Insurance Regulations

Mexico

The Mexican Stock Exchange (BMV) is a private institution that operates under a concession granted by the Ministry of Finance (SHCP), observing the Mexican Securities Law.  The Mexican Stock Exchange, or Bolsa Mexicana de Valores (BVM), is Mexico’s only stock exchange. It is the second largest stock exchange by market capitalisation in Latin America. BMV is now itself is a public company which is listed on its own stock exchange following a 2008 IPO.

The economy of Mexico is 11th to 13th largest in the world. Since the 1994 crisis, administrations have improved the country’s macroeconomic fundamentals. Mexico was not significantly influenced by the recent 2002 South American crisis, and has maintained positive, although low, rates of growth after a brief period of stagnation in 2001. Moody’s (in March 2000) and Fitch IBCA (in January 2002) issued investment-grade ratings for Mexico’s sovereign debt.

The economy contains rapidly developing modern industrial and service sectors, with increasing private ownership. Recent administrations have expanded competition in ports, railroads, telecommunications, electricity generation, natural gas distribution and airports, with the aim of upgrading infrastructure. As an export-oriented economy, more than 90% of Mexican trade is under free trade agreements (FTAs) with more than 40 countries, including the European Union, Japan, Israel, and much of Central and South America.

Investments in the Bolsa are limited to only “series A” issued stocks or ADR’s. The Mexican Stock Exchange has approximately 250 issuers of paper with an index of only 40 companies, which are actively traded. There is also an intermediate market of issuers (closely held and medium sized companies), which tends to be narrow and not actively traded.

Mexico Stock news Links

  • Copper Miner Grupo Mexico Prospers Despite Labor Unrest 30 Jan 2010 01:13 GMT
    … MEXICO CITY -(Dow Jones)- For 30 months, striking … Grupo Mexico B shares traded on theMexican stock exchange closed Friday at MXN26.51, down 4.3% on …
  • Mexico shuts Gulf oil port due to bad weather 30 Jan 2010 16:45 GMT
    … Thomson Reuters is the world’s largest international multimedia … small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, …
  • ACTOR – Lou Dobbs 30 Jan 2010 11:35 GMT
    … his most marketable attribute: power. Nevertheless, Dobbs’ Mexican-American wife and former CNN sports anchor Debi … Award for his coverage of the 1987 stock market crash. Although the man who once named … States. Dobbs has blamed illegal immigrants fromMexico for the dramatic rise of leprosy cases …
  • The Statistical Economic Recovery has Arrived 30 Jan 2010 19:51 GMT
    … The Statistical Recovery has Arrived This Time Is Different … recession you should get out of the stock market, was my call. I was a tad … the next step? Having lived through the Mexican, Thai, Korean and Argentine crises, it is …
  • US Gold Corporation: El Gallo Exploration Off to Excellent Start in 201030 Jan 2010 09:17 GMT
    … ounce Cortez project, and the other in Mexico where an exciting high-grade silver discovery has … on the NYSE Amex and the Toronto Stock Exchange under the symbol UXG. US Gold has … exploration undertaken by the Company at its Mexican exploration properties. Samples from the core drilling were …