Lima stock market closed in red amid uncertainty over Castillo’s speech before Congress

The Lima Stock Exchange (BVL) ended the day on Tuesday in negative territory due to the poor performance of the mining, construction, industrial and financial sectors, amid the expectation of President Pedro Castillo’s message before the Congress of the Republic.

At the close of trading, the S&P/BVL Peru General, the most representative of the Lima stock market, fell by 0.52% to 24,301.03 points.

Similarly, the S&P Index/BVL Peru Selective, which is made up of the most traded shares in the local market, fell by 0.42% and was placed at 634.49 units.

During the session, a traded amount of S/ 56.3 million was reported in 443 operations. In addition, shares of 66 companies were listed, of which 20 rose, 31 fell and 15 did not show any variation.

By sectors, the losses were in construction (-1.19%), mining (-1.02%), industrial (-0.84%), and financial (-0.23%). Meanwhile, the items that ended with gains highlighted consumption (0.24%), services (0.14%) and electricity (0.14%).

Among the local stocks that fell the most were Nexa Resources Atococha (-7.35%), Panoro Minerals (-4.67%), Sociedad Minera Cerro Verde (-4%), Compañía Minera Poderosa (-3.23%) and Trevali Mining Corporation (-2.83%).

On the contrary, those that rose the most stood out those of PPX Mining Corp (3.23%), Luz del Sur (3.13%), Telefónica (2.09%), Banco BBVA Perú (0.46%) and Enel Generation Peru (0.45%).

“The sector that fell the most was mining for the third consecutive day. This mainly following the national political situation, due to the uncertainty regarding the speech that the president of Peru will have in Congress”, pointed out César Romero, head of Research at Renta4 SAB.

Globally, Wall Street’s main benchmarks advanced Tuesday on the back of a sharp drop in oil prices, which have soared in recent weeks on fears the war in Ukraine will dampen global economic growth.

The S&P 500 soared 2.2% to 4,262.73 as the 50-day moving average closed below the 200-day moving average in trading on Monday. The Dow Jones Industrial Average jumped 600 points, or 1.8%, to 33,545.92, and the Nasdaq gained 2.9% to 12,948.62.

“Investors also weighed new data from Washington that showed US producer prices were unchanged in February for the first time in at least a year, a sign the trend could be turning inflation.Romero said.