Lima stock market collapses more than 4% after project for referendum by Constituent Assembly

The Lima Stock Exchange (BVL) closed in red this Monday due to the fall in all sectors, after the announcement of the Government’s project to submit a call for a Constituent Assembly to a referendum.

At the close of trading, the S&P/BVL Peru General, the most representative of the Lima stock market, fell by 4.36% to 22,319.36 points.

Similarly, the S&P Index/BVL Peru Selective, which is made up of the most traded shares in the local market, fell by 4.03% and was placed at 587.14 units.

During the session, a traded amount of S/ 44 million was reported in 999 operations. In addition, shares of 65 companies were listed, of which 8 rose, 46 fell and 11 did not show any variation.

By sectors, all had losses: industrial (-5.98%), construction (-5.06%), financial (-4.71%), mining (-3.64%), consumption (-2.70% ), electricity (-0.87%) and services (-0.87%).

Among the local stocks that fell the most were those of Casa Grande (-14.70%), Compañía de Minas Buenaventura (-8.25%), Ferreycorp (-8.12%), HudBay Mineral (-7.80%) and Andean Union of Cement (-7.77%).

“The local index plummeted on the day, this due to the resurgence of the possibility of a Constitutional Assembly, which in any case would have to take place in the long term. Two referendums are necessary for this to be carried out, in addition to the approval of Congress”, said César Romero, head of research at Renta4 SAB.

Globally, US stocks finished higher on Monday, erasing earlier losses on the day; this despite concerns about a COVID-19 outbreak in China adding to nervousness about US economic growth in the face of rising inflation and tightening monetary policy.

The S&P 500 rose 0.6% to 4,296.12. The Dow Jones added more than 200 points, or 0.7%, to close at 34,049.46, and the Nasdaq Composite was up 1.3% to close just above 13,000.

“US stocks bucked the trend of global stock markets, with major European and Asian stock indices falling heavily on Monday.”, added the expert.