Lima Stock Exchange collapses by more than 4% due to uncertainty about the global economy

The Lima Stock Exchange (BVL) ended the day on Monday in the red due to the drag of almost all its sectors, amid a global wave of aversion to risky assets that was driving the dollar, due to fears of a rapid slowdown. of the world economy due to monetary tightening.

At the end of the operations, the S&P/BVL Peru General Index, the most representative of the Lima stock market, fell by 4.12% to 20,038.09 points.

Similarly, the S&P/BVL Peru Selective Index, which is made up of the most traded shares in the local market, fell by 3.77% and stood at 523.66 units.

During the session, a traded amount of S/ 21.6 million was reported in 563 operations. In addition, shares of 65 companies were listed, of which 9 rose, 41 fell and 15 did not show any variation.

The sectors that had losses were: mining (-5.73%), financial (-4.83%), construction (-1.47%), industrial (-1.33%) and consumption (-0.80%) . Meanwhile, services and electricity did not register changes.

Among the local stocks that fell the most were those of Nexa Resources Atacocha (-24.76%), Trevali Mining Corporation (-15.94%), Empresa Agroindustrial Pomalca (-10.57%), Compañía Minera San Ignacio de Morococha ( -9.63%) and Compañía de Minas Buenaventura (-9.33%).

In contrast, the ones that rose the most were Compañía Minera Santa Luisa (7.69%), Compañía Minera Poderosa (1%) and Casa Grande (0.67%).

“At the local level, the Peruvian Index fell mainly due to external variables, also extending losses from last week”, said César Romero, head of research at Renta4 SAB.

Globally, US stocks fell on Monday to extend last week’s losses as investors awaited more data this week on inflation to gauge the strength of the economy and corporate earnings as the Federal Reserve continues to tighten monetary policy. , indicated the expert.

The S&P 500 fell more than 3% and ended at its lowest level since March 2021, closing below psychological support at 4,000. The Nasdaq Composite slumped 4.3% as tech stocks came under renewed pressure. And the Dow Jones lost more than 650 points, or 2%, to settle at 32,245.70.

“A combination of concerns on the geopolitical, COVID-19 and inflation fronts have weighed heavily on risk assets in recent weeks, causing volatility in stocks, cryptocurrencies and commodities.Romero added.

Other worries about economic growth have also abounded, as Russia’s war in Ukraine and China’s new virus-related lockdowns stoked worries about more lingering supply chain disruptions. Many strategists agreed that the next moves in the market would be driven by the Fed’s response to inflation amid this backdrop.