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Bulltick: Strong Year for Mexico

Mexico's stock exchange will be the star in Latin America this year, and the economy will grow 6 percent, Bulltick predicts.



The Mexican stock exchange will see the best performance in Latin America this year and new data on a jump in auto exports confirms that the country’s economy is headed for a 6 percent expansion, Bulltick Capital Markets says.


“We think that the Mexican Bolsa will deliver the best performance in the Latin America spectrum in 2010,” Alberto J. Bernal-León, head of research at Bulltick Capital Markets said in a commentary to clients.  “We think that Brazil, Chile, Colombia and Peru will continue to perform relatively well, but we think that Mexico will outperform those stories in 2010.”

That optimism is due to investors being underweight on Mexican stocks and the fact that the economy should grow at twice the level of the market consensus of 3 percent. “We think that the market consensus on 2010 growth is simply too bearish,” Bernal says.

Bulltick points to the news yesterday from the Mexican auto industry association AMIA said output last month was up 102 percent from January 2009, while exports jumped 124 percent.

Car production is one of the most relevant components of Mexican industrial statistics [and] the normalization of the US and world-wide car market will do wonders for Mexico's battered economy,” Bernal argues. 

All in all, Mexican car exports will likely increase by at least 25 percent this year, Bulltick estimates.

The news from AMIA came as Italian auto giant Fiat announced that it would invest $500 million to manufacture its 500 model in Mexico.

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