Thursday "black" for banks on the stock market after the proposal to ban commissions

MEXICO.- The Mexican Stock Exchange (BMV) It sank on Thursday at the close of operations more than 5%, driven by the shares of the banking sector, which fell more than 9%.

The price and quotation index (CPI), the benchmark of the stock market, lost 2,727 points, or 5.81%, to stand at 44,000 190.25.

In the same direction, the FTSE BIVA lost 5.66% to 894.52 points.

According to Gabriela Siller, director of financial and market analysis for Banco Base, Morena's proposed bill in the Senate by Ricardo Monreal, which would prohibit banks from charging fees in different ways, could hurt the industry.

In addition, the financial group said in a note to its clients that it was highly likely that the Bank of Mexico would raise its key rate by 25 basis points at its next meeting on November 15.

Shares of Grupo Financiero Banorte led the losses, down 11.9% to 107.01 pesos; while Santander fell from 8.02% to 25.93; Inbursa fell from 9.86% to 26.61% and Banco del Bajio from 7.74% to 25.61%.

The co-ordinator of the Morena Bank, Ricardo Monreal, will present this Thursday in front of the Plenary Senate an initiative going against the perception "alarming" and "excessive abuse" of bank fees which, in 2017 only, generated revenues of more than 108 billion pesos, eight percent more than in 2016.

The draft decree, which amends the Law on Transparency and Procurement of Financial Services and the Law on Credit Institutions, proposes to prohibit banks from charging fees according to various concepts, such as : the balance of the check and the withdrawal in cash; in the automatic teller machines; not to charge the minimum amount to companies that use the terminal product at the point of sale; replacement of the plastic bank in case of theft or loss;
Issuing additional statement of account and / or printing of movements;
transfer of credit in cash;
Credit card annuity concepts.

In addition, inflation influences the market, which is above expectations. The l & # 39; inflation in Mexico, it was 0.52% in October in its monthly comparison, more than 0.5% expected, the largest increase since August this year.

New York stock marketfor their part, the numbers were mixed despite the drop in the number of weekly jobless claims in the United States, which remained at its lowest level in almost 50 years.

The Dow Jones Industrial Average rose 0.04%, or 26,000,191.22 units, the S & P 500 lost 0.25%, to 2,000,806.83 points and the Nasdaq technology, down 0.53 %, at 7,000 530.89 units.

At the end of its two-day closed-door meeting, the Federal Open Market Committee decided to keep interest rates unchanged at between 2.0% and 2.25% as the Fed. market consensus

The Central Bank also made an upbeat update on the performance of the US economy, suggesting that an increase in its December meeting would be possible

In the energy market, oil prices record their worst series in four years after losses recorded in the last nine sessions. WTI in New York dropped 1.78% to 60.57 dollars a barrel. While Brent was in London, he fell 1.91% to 70.69 dollars a barrel.

At the corporate level, broadcasters with the largest decreases were Perrigo (16.32%), followed by Wynn Resorts, DR Horton and Qualcomm. The company begins to feel the consequences of its legal dispute with Apple, the technology maker has disappointed investors its weak forecasts
.

The Department of Labor announced that jobs stood at 214,000 during the week ended November 3rd
its lowest level in almost 50 years, reflecting the strength of the labor market.

With information from Reuters, Notimex and Bloomberg.