Lima Stock Market closes lower amid a global decline in the dollar

The Lima Stock Exchange (BVL) closed the Tuesday session with losses, amid a global decline in the dollar, amid a global decline in the dollar after inflation data in the United States that was below expectations and revived expectations of monetary relaxation in the world’s largest economy.

At the end of the operations, the S&P/BVL Peru General Index, the most representative of the Lima stock market, fell 0.58% with 21,516.62 points.

Similarly, the S&P/BVL Peru Selective Index, which is made up of the most traded shares in the market, fell by 0.72% and settled at 568.07 units.

During the session, shares of 56 companies were quoted, of which 33 rose, 10 fell and 13 did not register variation.

The sectors that presented gains were: mining (0.67%), industrial (0.49%) and construction (0.06%).

On the other hand, the segments that presented losses were: consumption (-1.83%) and financial (-1.45%). In addition, the sectors that did not change were services and electricity.

Among the local stocks that rose the most were Compañía de Minas Buenaventura (2.75%), Corporación Aceros Arequipa (2.22%) and Ferreycorp (1.33%).

In contrast, those that fell are Pomalca (-8.61%) and Alicorp (-2.09%).

César Romero, Head of Research at Renta4 SAB, points out that the stock market rose after the latest inflation data came in below expectations. That could cause the Federal Reserve to become less aggressive in raising interest rates, this central bank decision will be released on Wednesday afternoon.

Likewise, the consumer price index rose 7.1% year-on-year in November, below expectations of 7.3% and the 7.7% increase in October. Core CPI, which excludes the more volatile food and energy prices, rose 6%, down from 6.3% in October

The local market ended up closing lower again with low levels of liquidity as a result of uncertainty about the duration and severity of the protests at the national level.

At regional level

Most Latin American stock markets traded with gains on Tuesday amid a global decline in the dollar after lower-than-expected inflation data in the United States revived expectations of monetary easing in the largest economy in the world.

According to Reuters Agency, consumer prices in the United States barely rose in November amid declines in the cost of gasoline and used cars, leading to the smallest annual increase in inflation in nearly a year, which could give argument to the Federal Reserve to start reducing the size of its interest rate hikes on Wednesday.

The Consumer Price Index increased 0.1% last month, after advancing 0.4% in October, the Labor Department reported on Tuesday.