Peru Stocks Drop as Humala Gains in Poll: World's Biggest Mover
2006-03-20 11:53 (New York)
By Alex Emery
March 20 (Bloomberg) -- Peruvian stocks fell, the biggest move
among markets included in global benchmarks, after Nationalist
Party candidate Ollanta Humala rose to first place in a poll ahead of April's presidential elections.
The Lima General Index fell for a second day, dropping 223.13,
or 3.7 percent, to 5,743.70. The index has fallen 11.4 percent
since Feb. 6. The country's bonds and currency also fell after the gain by Humala, who has campaigned to make the state a partner in all contracts to develop natural resources. Credicorp, the country's largest financial holding company, had the biggest decline in the stock market.
Support for Humala, leader of the Peruvian Nationalist Party,
rose to 32 percent of likely voters in a poll taken March 15-17, from 30 percent a week earlier, according to Lima-based Apoyo Opinion y Mercado. Backing for free-market advocate Lourdes Flores fell to 28 percent from 31 percent.
Former President Alan Garcia's support fell to 21 percent from 22 percent.
``The markets are reacting to the polls, but investors will
sell off more aggressively if Flores doesn't make it into the
second round,'' Boris Segura, who helps manage $900 million in
emerging-market debt at Standish Mellon Asset Management in Boston, said in a phone interview.
Humala, 43, a former army lieutenant colonel, said last week
that if elected, he will run tax audits on international companies and renegotiate oil and mining contracts to include the state as an equal partner.
Humala first led the polls in mid January, spurring a 6.3
percent decline in the index from Jan. 4 through Jan. 13. The index jumped 30 percent from Jan. 13 to Feb. 13, when he was overtaken again by Flores, 46, a lawyer and former congresswoman who backs free-market policies and a trade agreement with the U.S.
Credicorp, which owns Peru's largest bank, Banco de Credito,
fell 65 centimos, or 2.5 percent, to 25.8 soles. The stock has
fallen 14 percent since Feb. 27.
Cia. De Minas Buenaventura, which holds a 44 percent stake in
Yanacocha, the world's second-largest GOLD mine, fell 50 centimos, or 2 percent, to 24 soles. The stock has fallen 14 percent since Feb. 24.
Volcan Cia. Minera, Peru's largest zinc-lead producer, fell 25
centimos, or 9.1 percent, to 2.5 soles. The stock has dropped 28 percent since Feb. 6.
--Editor: Kleege.
AZK / MNG /
CMM.V / IPT.V / MUG.V
PRZFF.PK ( PRZ.V ) / BDRGF.PK ( BGL.V ) |
