Flash Report /
Mexico

EQUITY STRATEGY: GENTERA to return to the MEXBOL instead of BOLSA

  • On September 2nd the MSE and S&P will announce the sample changes that will integrate the Mexbol index on the 15th

  • GENTERA would return to the index after positioning itself favorably in the combined ranking criteria

  • While BOLSA could leave the sample for not meeting the minimum liquidity criterion of 3M

Marissa Garza Ostos
Marissa Garza Ostos

Head of Equity Research

Follow
Jose Itzamna Espitia Hernandez
Jose Itzamna Espitia Hernandez

Senior Equity Research Analyst, Infrastructure, Materials and Transportation

Follow
Banorte
3 August 2022
Published byBanorte

GENTERA to return to the MEXBOL instead of BOLSA

  • Next Friday, September 2nd, the MSE and S&P Dow Jones Indices will announce the changes to the sample that will integrate the Mexbol Index, at Thursday market close, September 15th

  • GENTERA could return to the index after positioning itself favorably in the combined ranking criteria and BOLSA might abandon it for not meeting the minimum liquidity criterion of 3M

GENTERA might replace BOLSA. Upon performing an exercise with data as of July 29th (reference date), we expect GCARSO to fail to comply with the minimum liquidity criteria (monthly median daily value traded ≥ $30 million), of both 3M and 6M. Additionally, BOLSA, GCC, and SITES would be in the same situation by not covering the 3M. However, stating the fact that no other stock would fulfill with the requirements to enter the index, with the aim to maintain the minimum of 35 issuers, the combined ranking would again be applied. In this way, GCARSO, GCC, and SITES would remain in the benchmark, and the one which would be entering might be GENTERA, being the third best positioned of the nine stocks to which the combined ranking criteria was applied (see the attached tables). In that sense, the stocks that would maintain the highest weighting within the Mexbol Index would be AMX (15.2%e), WALMEX (12.9%e), GFNORTE (9.8%e), GMEXICO (8.3%e), and FEMSA (8.0%e). In turn, it should be noted that there would be no substantial changes in the weighting according to our calculations, with variations potentially occurring only in the following cases: CEMEX (-0.2%e), AMX (+0.1%e), GFNORTE (-0.1%e), and OMA (-0.1%e).  It is important to mention that these calculations could change due to the float adjustments realized by S&P Dow Jones Indices and the Mexican Stock Exchange.

Current constituents’ analysis based on the criteria to remain in the sample

Potential joiners’ analysis based on the selection universe and liquidity criteria

Combined ranking criteria analysis to determine at least 35 constituents for Mexbol

Estimated index constituents’ weightings after resampling and rebalancing