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By KELIN DILLON

According to a new report from daily Mexican newspaper Reforma, Mexican companies benefit more financially from not being listed on the Mexican Stock Exchange (BMV) than being listed in their domestic market.

Approximately 9 percent of high-profile Mexican companies once listed on the exchange have left the BMV during the last six years, including Aeroméxico, Banco Santander, Bachoco, Ienova, Lala and Citigroup.

Likewise, an initial public offering (IPO) has not been held on the BMV throughout the same six years.

Analysts have signaled that the BMV’s fragility, Mexico’s lack of ordinary investors, undue control from major businessmen and cheap stock prices nonrepresentative of companies’ actual value have prompted Mexican companies to exit the national market.

“Companies consider that there are other sources of financing with less risk and less cost and when a company is in complications those costs can be high, which is why they decide to leave the market,” said CIBanco analyst Ariel Méndez.

In that same vein, the BMV’s small size has failed to attract both local and international investors as investments in the Mexican stock market have low profitability compared to other global markets.

“As long as there are no sectors with activities that are more innovative, more disruptive, the Mexican market will continue to behave in the same way,” concluded Roga Capital director Jacobo Rodríguez.