Lima Stock Exchange erases profits and closes down due to political uncertainty

The Lima Stock Exchange (BVL) ended the day on Wednesday with its main indicators in negative territory, partially affected by the political uncertainty derived from the request for a vote of confidence to the Ministerial Cabinet led by Aníbal Torres.

At the end of the operations, the S&P/BVL Peru General Index, the most representative of the Lima stock market, fell by -0.70% to 24,057.97 points.

For its part, the S&P/BVL Peru Selective Index, which is made up of the most traded shares in the local market, fell -0.69% and stood at 630.66 units.

With today’s result, the selective index moved away from the last record level reached yesterday (635.01 points) and even from mid-January, when it stood at 633.49 points.

“We believe that the volatility due to the political situation affected the performance of the stock market today, as well as mixed results from the construction sector, which cut profits due to lower margins”, said César Romero, head of Investigation of Renta 4 SAB.

By sectors, the one that presented the best performance was mining, while the biggest drops were seen in consumption and construction.

The Congress of the Republic proposed that the approval of the vote of confidence be debated on March 8. Aníbal Torres, head of the Presidency of the Council of Ministers (PCM), confirmed today that the proposed date will be respected.

Among the shares that rose the most within the local index were those of Minsur (+6.54%), Volcan (+5.71%) and Enel Generación (+4.88%). While those that fell the most were Alicorp (-4.12%), IFS (-2.20%) and Cerro Verde (-2.15%).