BVL closes with mixed indices in session of few operations after enacting law on withdrawal of 100% of the CTS

The Lima Stock Exchange (BVL) ended the day this Wednesday with its mixed indicators, after the Executive promulgated the law on the withdrawal of 100% of the Compensation for Time of Service (CTS), and in the midst of the publication of the minutes of the Federal Reserve of the United States, in which it was warned about the tightening of measures against inflation.

At the end of the operations, the S&P/BVL Peru General Index, the most representative of the Lima stock market, fell by 0.16% to 20,384.63 points.

Meanwhile, the S&P/BVL Peru Selective Index, which is made up of the most traded shares in the local market, advanced by 0.09% and stood at 531.97 units.

During the session, a traded amount of S/ 11.01 million was reported in 263 operations. In addition, shares of 50 companies were listed, of which 27 rose, 11 fell and 12 did not register a variation.

By sectors, those that had losses: mining (-0.59%) and consumption (-0.33%). While those that ended in green are services (0.80%), electricity (0.80%), construction (0.20%), industrial (0.14%) and financial (0.04%).

Among the local stocks that fell the most were those of Compañía Minera San Ignacio de Morococha (-5.98%), Trevali Mining Corporation (-5.45%), Empresa Siderúrgica del Perú (-3.45%), Aenza (before Graña y Montero, -1.90%) and Citigroup (-1.54%).

In contrast, those that rose the most stood out Empresa Agroindustrial Pomalca (4.31%), Enel Generación Perú (2.78%), Intercorp Financial Services Inc (2.12%), Corporación Aceros Arequipa (2.07%) and Cementos Pacasmayo (2.04%).

“At the local level, the Peruvian Index fell by 0.16% closing with low volumes on the day, this could have been influenced by the enactment of the law that authorizes the withdrawal of 100% of the CTS”, said César Romero, head of research at Renta4 SAB.

globally

US stocks rose during a choppy session on Wednesday, as investors considered a series of warnings from companies about the impact of inflation on profits along with the latest communications from the Federal Reserve on the use of its policies to control the rising prices, the analyst noted.

The Fed’s May meeting minutes reaffirmed that central bank officials saw additional rate hikes of 50 basis points as appropriate during the next two meetings.

The S&P 500 stumbled but then gained in the afternoon after the release of Fed minutes, which also signaled more aggressive tightening and “a restrictive policy stance may well be appropriate depending on the evolution of the economic outlook and the risks to it”.

The Dow Jones and Nasdaq also rose. Treasury yields were mostly down, with the benchmark 10-year yield falling to hold just above 2.75%.