Mexican billionaire Carlos Slim Helu’s fortune witnessed a dip in his fortune by $4.7 billion after Donald Trump emerged victorious in the US presidential elections on Wednesday.
The drop lowers Slim’s net worth to $49 billion at midday East Coast time on Wednesday, down from FORBES estimate of $53.7 billion on Tuesday when markets closed.
Shares of America Movil, the telecommunications company in which Slim holds a 62% stake, are down 9% in the US and almost 4% in Mexico as of 1:15 pm E.T. Analysts who follow America Movil said the drop is due to a mix of peso weakness and to investors who were cashing out of the company assuming that the stock will fall further.
Trump’s surprising win also put pressure on the Mexican peso.
At about midnight Tuesday, when Trump’s chances of winning the election hovered around 80%, the peso had weakened 13%, to almost 21 pesos per U.S. dollar. The peso recovered slightly on Wednesday, and is worth about 19.8 pesos per US dollar.
Mexico’s currency reacted to Trump’s poll numbers for roughly the past six months, strengthening when his chances looked bleak and weakening when he surged.
Currency analysts had predicted the Mexican peso would drop to historic lows if Trump clinched the race.
Currency strategist Juan Carlos Alderete at Mexican bank Banorte had projected the peso would drop by about 16% immediately after a Trump win.
Meanwhile, technical analyst Juan Francisco Caudillo with financial firm Monex had estimated the peso could drop between 9% and 13% by year-end.
Caudillo said Wednesday he thinks the peso might depreciate further. The markets have already priced in the fear of Trump’s campaign policies such as renegotiating NAFTA, Caudillo said. He added: “The market is going to be trying to see if he’s going to insist on those comments or if he’s going to be taking a more conciliatory tone.”
