Mexican CPI

The Mexican CPI is the main stock index of Mexico comes from the acronym or abbreviation of the price and price index of Mexico, although it is sometimes confused with the consumer price index.

The Mexican CPI is only built with a sample of the issuing companies listed on the Mexican Stock Exchange (BMV).

This index includes the 35 most important companies in the country. We can highlight among them Cemex, Kimberly-Clark, America Movil, Grupo Televisa or Mexican Economic Development.

The CPI is calculated on a daily basis based on a complex formula based on the number of shares of the listed issuing companies, the value of the companies, and the price of the shares of each company, among some of the factors that determine it. In addition, the calculation follows a daily rotation selection criteria and the capitalization value adjusted for floating shares.

How is the Mexican CPI formed?

In April 2012, the Mexican Stock Exchange changed the calculation criteria of the companies listed in the Mexican CPI, contemplating the actions with availability restriction and establishing five filters for the issuers of the stock exchange that made up this indicator or index and are the following:

  1. Minimumcontinuous operation time.
  2. Minimum floating stock percentage.
  3. Minimum float capitalization value
  4. Greater rotation factorof 45 stations.
  5. Joint qualificationon the rotation factor, float capitalization value, monthly median of the amount operated in the Mexican Stock Exchange of the last 12 months.

In this way, the 35 companies that make up the index are formed, being reviewed every six months and replaced by others if they do not meet the selection requirements.

Leave a Comment