Mexico's benchmark IPC stock market index has bounced back to it's highest level
for 7 months as investors and analysts continue to respond positively to the
Mexican government's assertive action against the flu.
24-28 - the first days world stock markets reacted to the influenza news - the
index dropped nearly 9% but since then has regained an impressive 10.4%,closing
yesterday at a value of 23,906.131.
The Mexican peso has also made strong
gains against the US dollar over the last 7 days,yesterday reaching 0.0762
(13.12 per dollar). This is some 6.3% higher than it's value of 0.717 on April
27 (13.95 per dollar).
According to a survey released by Mexico's central
bank earier this week,the peso will weaken less this year than previously
expected. The average estimate of 31 economists surveyed suggests the peso will
decline to 13.65 per dollar by the end of 2009,compared with a previous
forecast of 14.25.
Speaking to Bloomberg news last week,Eduardo Estrada,
head of the fixed-income trading desk in Mexico City at Actinver SA,the
country’s biggest independent money manager,said “There is a perception that
the outbreak may be resolved faster than what people earlier
Don't let the hype fool you. Now is the time to invest in
Mexico. Act fast.