- Stock index, world’s best performer, is little changed
- Investors more comfortable with PPK win, Inteligo says
Peru’s new sol and sovereign bonds rose Monday as former Wall Street veteran and central banker Pedro Pablo Kuczynski looked poised to be declared the winner in Sunday’s presidential election.
The sol gained 0.5 percent to 3.3180 per dollar, its strongest level in almost three weeks. Local currency bonds due in 2024 rose 1.4 percent, or 13 cents, to 100.02 centimos per sol, with the yield dropping 21 basis points to 5.69 percent. The S&P/BVL Peru General stocks, the world’s best-performing equity index this year, was little changed.
With 93 percent of the ballots counted, Kuczynski held a slight lead over Keiko Fujimori, who until last week seemed to be the clear winner, according to the latest tally by Peru’s electoral office. BTG Pactual said in a note Monday that the run-off was widely considered a win-win for market because both candidates backed maintaining the current institutional and economic framework. Even so, Kuczynski was the favorite, said Roberto Flores, chief strategist at Lima-based Inteligo SAB.
“The private sector is a little more comfortable with Kuczynski than with Fujimori because of his international experience and because he’s well known in the market," Flores said.