Editing Economy of Mexico (section)

====Securities market====

[[File:Bolsa Mexicana de Valores.png|thumb|The Mexican Stock Exchange]]
Mexico has a single securities market, the [[Bolsa Mexicana de Valores|Mexican Stock Exchange]] ('''Bolsa Mexicana de Valores''', known as the Bolsa). The market has grown steadily, with its main indices increasing by more than 600% in the last decade. It is Latin America's second largest exchange, after Brazil's. The total value of the domestic [[market capitalization]] of the BMV was calculated at [[United States dollar|US$]]409 billion at the end of 2011, and raised to [[United States dollar|US$]]451 billion by the end of February this year.<ref>{{cite web|url=http://www.world-exchanges.org/statistics/monthly-reports |title=Monthly Reports |publisher= World Federation of Exchanges  |access-date=June 11, 2015 |url-status=dead |archive-url=https://web.archive.org/web/20140817220823/http://www.world-exchanges.org/statistics/monthly-reports |archive-date=August 17, 2014  }}</ref>

[[File:Alianza_del_Pacífico-Logo.PNG|thumb|left|200px|[[Pacific Alliance]]-Logo 
Since 2014 it is part of the [[Mercado Integrado Latinoamericano]], as part of a unified bag of The Pacific Alliance.]]

The [[Indice de Precios y Cotizaciones]] (IPC, the general equities index) is the benchmark stock index on the Bolsa. In 2005 the IPC surged 37.8%, to 17,802.71 from 12,917.88, backed by a stronger Mexican economy and lower interest rates. It continued its steep rise through the beginning of 2006, reaching 19,272.63 points at end-March 2006. The stockmarket also posted a record low vacancy rate, according to the central bank. Local stockmarket capitalisation totalled US$236bn at end-2005, up from US$170 bn at end-2004. As of March 2006 there were 135 listed companies, down from 153 a year earlier. Only a handful of the listed companies are foreign. Most are from [[Mexico City]] or [[Monterrey]]; companies from these two cities compose 67% of the total listed companies.

The IPC consists of a sample of 35 shares weighted according to their market capitalisation. The largest companies include America Telecom, the holding company that manages Latin America's largest mobile company, [[América Móvil]]; [[Telmex]], Mexico's largest telephone company; [[Grupo Bimbo]], world's biggest baker; and [[Walmex|Wal-Mart de México]], a subsidiary of the US retail company. The makeup of the IPC is adjusted every six months, with selection aimed at including the most liquid shares in terms of value, volume and number of trades.

Mexico's stock market is closely linked to developments in the US. Thus, volatility in the [[New York Stock Exchange|New York]] and [[Nasdaq]] stock exchanges, as well as interest-rate changes and economic expectations in the US, can steer the performance of Mexican equities. This is both because of Mexico's economic dependence on the US and the high volume of trading in Mexican equities through American Depositary Receipts (ADRs). Currently, the decline in the value of the dollar is making non-US markets, including Mexico's, more attractive.

Despite the recent gains, investors remain wary of making placements in second-tier initial public offerings (IPOs). Purchasers of new issues were disappointed after prices fell in numerous medium-sized companies that made offerings in 1996 and 1997. IPO activity in Mexico remains tepid and the market for second-tier IPOs is barely visible. There were three IPOs in 2005.<ref>[http://portal.eiu.com/index.asp?layout=displayIssueArticle&issue_id=180437203&article_id=1370437322 Country Finance Main Report: April 26, 2006 (Mexico)] Securities Market Overview</ref>