The technical structure of the IPC Mexico Index (benchmark for the Mexican stock market) looks interesting.
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Prices, after falling towards the end of October to 48,000 points, made a quick leap forward and rose to a peak of 58,338 points.
The primary trend is positive even if, before a further leap forward can be made, a re-accumulative phase above the graphic support placed in the 54,350-54,000 point area will be necessary.
The holding of this area may in fact create premises for a new bullish spurt.
From a graphical point of view, however, only the breakout (confirmed at the close of the session) of 58,000 points could provide a new demonstration of strength and open up further room for growth, with theoretical targets in the 58,850-58,950 area first, at 59,500 points then and towards the psychological threshold of 60,000 points later.
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It is difficult for now to hypothesise a bearish trend reversal: however, a descent below 53,800 points is dangerous, as it could trigger a rapid correction in the 53,000-52,900 area first and around 52,200 points later.
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The following ETFs can be used to invest in the CPI Mexico index:
Xtrackers MSCI Mexico, ISIN LU0476289466. It is an ETF with €232m in assets under management, which provides for the total physical replication of the underlying (by purchasing all components of the index) and which adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.65% per annum.
Ishares MSCI Mexico Capped, ISIN IE00B5WHFQ43. This is an ETF that replicates the performance of the MSCI Mexico Capped index. The ETF, which has EUR 85 mln in assets under management, provides for total physical replication of the underlying (by purchasing the components of the high and mid-capitalisation index) and adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.65% per annum.
HSBC MSCI Mexico Capped, ISIN IE00B3QMYK80. It is an ETF that replicates the performance of the MSCI Mexico Capped Index. The ETF, which has EUR 16 mln in assets under management, provides for total physical replication of the underlying (by purchasing the components of the high and mid-capitalisation index) and adopts a distribution policy (with dividends being distributed semi-annually to investors). The total expense ratio (TER) is 0.50% per annum.
Copyright DMF New Media – ETFWorld.co.uk
Reproduction prohibited in any form, even partial
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