Lima stock market and sun indifferent with Jerí's censorship

The Lima Stock Exchange (LSE) and the exchange rate operated without problems after the resignation of President José Jerí. According to experts, the market had already discounted a possible departure of the president in its prices, after the new controversial information spread by the press about the former president.

The lack of skills demanded by the market is among the main causes.

The general index of the Lima stock market at 3 p.m. registered a drop of 1.68%, which originated one hour after its opening and remained flat during the rest of the session. Even at 3:30 p.m. the drop was reduced to 1.52%.

Alberto Arispe, CEO of Kallpa SAB, stated that the EPU, the Peruvian stock package listed on the New York Stock Exchange, was trading lower (-1.7%), but from early on and did not move after the news. He commented that the exchange rate experienced a similar impact.

According to the BCR, the dollar closed with a price of S/3,346, slightly lower than the day before (S/3,348). Even the strengthening of the sun would have been greater without the intervention carried out by the monetary authority. According to the Economic Studies area of the BCP, until last week, the central bank accumulated net purchases of dollars in the interbank market for US$3.4 billion and the balance of foreign exchange swaps sales stood at S/7.6 billion.

“The market, very unfortunately, has already discounted that we live in a country where Congress vacates or censures presidents from time to time, without caring about the negative impact that the constant changes of presidents, ministers, vice ministers and directors have on the management of the State and on the confidence of investors on the future of the country,” said Arispe.

The representative of the brokerage house expressed his concern, arguing that political noise reduces private investment, reduces growth, generates less demand for employment and increases poverty.

“It’s sad that the market has that perception of the country. We’ve had seven presidents in eight years and that doesn’t help,” he said.
Arispe stated that with mineral prices up and the good international environment of lower rates, Peru should grow 6% a year with a decent government. “But if you remove presidents every six months, growing 3% is a luxury,” he stressed.