Peruvian Stocks Sink 5% in Extension of World’s Worst Selloff
Peruvian stocks slumped, extending the world’s worst decline in 2013, as metals dropped after the Federal Reserve said it may pare monetary stimulus.
The Lima General Index (IGBVL) fell 5 percent to 15,739.83 at 1:33 p.m. in Peru, extending its decline this year to 24 percent. Brazil’s Ibovespa has dropped 23 percent in the same period.
“Mining companies are leading the drop in the local market,” Marco Contreras, an equity analyst at Lima-based Kallpa Securities, said in a phone interview. “Companies linked to domestic demand are also suffering from the comments made by the Fed.”
Copper fell as much as 3.3 percent today in New York and gold tumbled 5.2 percent after the Fed said it may reduce bond purchases that have fueled gains globally. The two metals account for half of Peru’s exports.
Rio Alto Mining Ltd. (RIO) led losses among the Lima index’s members, falling 16 percent to $1.98. Soc. Minera Cerro Verde SAA slid 11 percent to $24.40. Credicorp Ltd. (BAP), which controls Peru’s largest lender, retreated 4.1 percent to $124.58.
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