While the Peso has strengthened back below its 200 day MA, it remains in a well defined trend channel from the October low and resistance comes in multiple ways down to 12.98.
As we’ve highlighted here at Emerging Money throughout the year the Mexican Market has been a star of the Emerging World in recent years, and sits just 4% off of an All Time High after the recent correction.
America Movil (AMX, quote), Latin America’s largest mobile-phone carrier, beat revenue and earnings expectations for the third-quarter when it reported last week. Net income increased to $0.61 per share on top-line revenue growth of 4.5% to $14.8 billion. The report represents a strong 67% increase in net income over the same period last year, largely on an increase in data services and pay-per-view TV services.
Negative sentiment on China continues to drag other emerging markets down, and will likely keep on doing so until more concrete stimulus measures are announced. It’s not all doom and gloom though, as Russia, India, and Mexico can attest.
Emerging market funds recorded a tenth week of inflows last week, the longest run since 2010, as investors put global risk (pronounced eurozone crisis) behind them. Despite the continued inflows, the average emerging market equity portfolio lost 3.1 percent as investors took some profits off the table.
As far as Itaú BBA is concerned, the looming quarterly results from Latin America’s biggest telecom carriers will be uneventful — but any surprise could still move these stocks.
The Chinese New Year starts this week with the year of the Water Dragon. This will limit the amount of market-moving releases from the country this week and spawn a myriad of Feng Shui inspired stories about making money after a jittery year of the rabbit.