Grupo Televisa shares plunge on potential S&P/BMV IPC removal

Shares of Grupo Televisa experienced a significant decline on the Bolsa Mexicana de Valores, dropping approximately 12.7% to close around 7.74 pesos. During intraday trading, the stock fell as much as 14.3%, marking its worst performance in 25 years.

The sell-off is linked to preliminary results from S&P Dow Jones Indices suggesting Televisa may be removed from the S&P/BMV IPC, Mexico’s primary stock market index, after approximately 35 years. The removal is not due to a failure to meet eligibility criteria, but rather a loss of position relative to other companies due to decreased trading activity. Analysts from Banorte noted that a decline in the median number of transactions affected its standing.

If removed from the index, investment funds that track the S&P/BMV IPC may be required to reduce their holdings, potentially increasing market supply and further pressuring the stock price. Alpek is expected to take Televisa's place in the index. Final results of the index review are expected on September 11.