Peruvian Stocks Plummet in Extension of World’s Worst SelloffEduardo Thomson
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 fell 4.9 percent to 15,746.1 at the close of trading, extending its decline this year to 24 percent. Brazil’s Ibovespa fell 21 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 3.4 percent today in New York and gold tumbled 4.9 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. contributed most to the Lima index’s members, falling 17 percent to $1.94. Soc. Minera Cerro Verde SAA slid 11 percent to $24.53. Credicorp Ltd., which controls Peru’s largest lender, retreated 5.7 percent to $124.50.