Peru Market

Social protests left, according to the Commerce of Peru, in the sectors trade, forestry, tourism, agriculture and transport losses by $295 million in the month of June. But Peru, in addition to the social upheaval, also lives another reality of international recognition. The achievement of being investment grade and the attraction that demonstrates to the foreign direct investment (FDI), are own merit. International investors recognize when an economy comes along the right path and also has attractive investment opportunities. Aware of the international attraction that generates the Peruvian economy, since the Government is decided to insert the main companies of the country in the global financial markets. In this sense, during the day yesterday, the Minister of economy and finance Luis Carranza, executed the traditional Bell, on the New York Stock Exchange, giving rise to the same officer the launch of the financial instrument which is called IShares MSCI Peru All Capped Index Fund (NYSE:EPU) and which has begun trading on the New York stock market. In simpler terms, this instrument is the first ETF (Exchange – Traded Fund is an investment fund that has the peculiarity that is listed in the stock market), listing of Peru, and is composed of the 25 most important actions of the Peruvian securities market. According to Invertia, Carranza stated after his participation in the opening of the U.S.

stock market: today (Monday) welcomed the listing of this ETF is a basket of shares and that will capture this investment potential that exists in the market for the country. No doubt the launch of the first ETF of Peruvian shares may represent the first step in future releases to strengthen the pipeline of investments towards the Peruvian economy and thus enhance their growth and development. About prospects of profitability may have such ETF, i.e. that, taking the general index of the stock exchange of Lima (represents the average number of 38 main paid-up shares), although since the conflicts in the forest began, that index marked a trend downward, since late February has been recovering value and is currently at almost twice the value than the one observed in the month of February. The question of social instability is influencing the same, why the solution to these conflicts appears as the key to consolidate the recovery of the Peruvian securities market which has foundations to grow and currently lies slightly above half the maximum level that was able to achieve in 2007.

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