Lima stock market closes in red amid uncertainty over the Constituent Assembly debate

The Lima Stock Exchange (BVL) ended the day on Monday in negative territory due to the drag of almost all its sectors, amid the expectation that the Constitution Commission of Congress will debate this Tuesday the referendum bill to convene a Constituent Assembly.

At the close of trading, the S&P/BVL Peru General, the most representative of the Lima stock market, fell by 1.90% to 22,386.28 points.

Similarly, the S&P Index/BVL Peru Selective, which is made up of the most traded shares in the local market, fell by 1.50% and was placed at 588.75 units.

During the session, a traded amount of S/ 23.7 million was reported in 438 operations. In addition, shares of 66 companies were listed, of which 14 rose, 44 fell and 8 did not show any variation.

By sectors, those that had losses are construction (-3.01%), mining (-2.79%), industrial (-2.49%), financial (-1.80%), services (0, 14%) and electricity (0.14%). Only consumption closed in green with 0.60%.

Among the local stocks that fell the most were those of Aenza (formerly Graña y Montero, -6.94%), Volcan Compañía Minera (-4.65%), Intercorp Financial Services Inc (-4.58%), Cementos Pacasmayo ( -4.35%) and Trevali Mining Corporation (-3.75%).

In contrast, the ones that rose the most were Compañía Minera Morococha (5%), Unión de Cervecerías Peruanas Backus y Johnston (4.62%), Cartavio (4.35%), Hidrandina (3.05%) and Cervecería San Juan ( 2.40%).

“At the local level, the political uncertainty surrounding the bill that seeks to submit the call for a Constituent Assembly to a referendum was accentuated on the day. This will be seen in the Constitution commission on Tuesday”, said César Romero, head of research at Renta4 SAB.

Globally, US stocks rose in the first session of May after one of the worst monthly performances of the S&P 500 since the pandemic lows in 2020.

The S&P 500, Dow and Nasdaq all tested positive in the final trading hour on Monday. US crude oil prices reversed earlier declines to move above $105 a barrel, with the benchmark 10-year Treasury yield rising to 3%, its highest level since December 2018.

“Investors are bracing for more potentially market-moving events to follow after April’s volatile trading streak, ahead of expected Fed comments in Committee this week.”, added the expert.