Mexico and Andean Stocks: IPC, IPSA, COLCAP, BVL — 2026-09-19

Top developments

Mexico’s IPC Hits Lowest Close Since December Amid Fed Tightening

The S&P/BMV IPC closed Friday, September 18, at 63,375.93 points, a decline of 0.78% that marks the index's lowest closing level since December. The drop reflects reduced attractiveness of local assets following the Federal Reserve's decision to raise rates to 3.75-4%, which strengthened the dollar and pressured emerging market currencies. The Mexican peso softened offshore to 17.24 per dollar, contributing to the negative sentiment among foreign investors who have been reducing exposure to Mexican equities.

Colombia’s COLCAP Takes Hardest Regional Hit

The Colombian market experienced the region's most severe correction this week, with the COLCAP falling approximately 2.16% on Thursday, September 17. The decline was exacerbated by a simultaneous 4% drop in crude oil prices and the Fed's rate hike, which triggered capital outflows from riskier assets. Although the index managed a slight recovery of 1.05% later in the week, the overall weekly performance remained negative as the peso slipped against the dollar, raising costs for importers and debtors.

Chile’s IPSA Defies Regional Trend with Lithium and Copper Gains

In contrast to its neighbors, Chile’s IPSA rose 1.30% on Friday, September 18, closing at 11,381.18 points before the exchange shut for Fiestas Patrias. The rally was led by SQM, whose shares surged as lithium prices stabilized, alongside gains in copper-linked miners. The Chilean peso also strengthened significantly, appreciating against the dollar by 2.43 pesos in the final session, an outlier move in Latin America that highlighted the strength of Chile's commodity exports despite global monetary tightening.

Copper Miners Rally on Chinese Demand Despite Fed Pressure

Copper prices rebounded on Friday, September 18, gaining for a third consecutive session due to signs of physical buying from China. This demand supported mining stocks listed in the Andean region, with Southern Copper gaining 3.28% and Freeport-McMoRan rising 2.33%. These gains provided a crucial buffer for the IPSA and other resource-heavy indices, offsetting some of the negative drag from higher US interest rates which typically strengthen the dollar and pressure commodity prices.

Local view

El Economista (Mexico) reported that the BMV concluded its fourth consecutive week of losses, with the IPC failing to break its downward streak despite earlier intraday attempts to recover. The outlet noted that Wall Street's mixed performance failed to provide sufficient momentum for Mexican equities, leaving the index vulnerable to external monetary policy shifts.

Diario Financiero (Chile) highlighted that the local exchange saw strong trading volumes driven by Falabella, which accounted for nearly 52.5 billion pesos in transactions, while SQM-B served as the primary positive driver for the IPSA. The Chilean media emphasized the resilience of the local currency, noting the peso's firming trend as a key stabilizer for investor confidence during the holiday week.

Context & numbers

• Mexico IPC: Closed at 63,375.93 (-0.78% on Friday). Weekly close is the lowest since December 2025. Peso closed at 17.22 per dollar.
• Chile IPSA: Closed at 11,381.18 (+1.30% on Friday). Previous close was 11,236 (-0.77% on Thursday). Chilean peso strengthened to 951.49 per dollar on Thursday before further gains on Friday.
• Colombia COLCAP: Fell ~2.16% on Thursday, September 17, before recovering slightly to end the week with a 1.05% gain on the final day of data available in this cycle. Crude oil dropped 4% mid-week, impacting energy-heavy constituents.
• Copper: Rose for three sessions leading into Friday, September 18, driven by Chinese physical buying. Southern Copper (+3.28%) and Freeport (+2.33%) were key beneficiaries.
• Fed Policy: The Federal Reserve raised rates by 25 basis points to a range of 3.75-4%, triggering a dollar rally and pressure on emerging market equities across Latin America.

On the radar

• Chilean Exchange Closure: The Santiago Stock Exchange remains closed through Monday, September 21, for Fiestas Patrias holidays. Investors should anticipate potential volatility upon reopening as global markets continue to digest the Fed's rate hike.
• Peruvian Mining Stability: Foreign capital continues to flow into the Lima BVL, attracted by stable mining laws under the Fujimori administration and the sector's exposure to copper and zinc. Watch for continued inflows into mining-heavy ETFs tracking Peru.
• Mexican Peso Volatility: With the peso softening to 17.24 offshore, watch for Banxico's next intervention or statement regarding FX reserves, especially if the dollar strengthens further following the Fed's hike.