Lima Stock Exchange closes in the red in line with Wall Street

The Lima Stock Exchange (BVL) ended Wednesday’s session with heavy losses due to the dragging of the financial, mining and consumer sectors, following the poor performance of the markets on Wall Street.

At the end of trading, the S&P/BVL Peru General Index, the most representative index of the Lima stock exchange, fell 2.14% to 19,833.91 points.

Likewise, the S&P/BVL Peru Selective Index, which is formed by the most traded shares in the local market, fell 1.53% to 519.08 units.

During the session, S/. 37.4 million was traded in 432 operations. In addition, shares of 59 companies were traded, of which 13 rose, 36 fell, and 10 did not register any variation.

By sectors, those with the highest losses were: financial (-4.59%), mining (-1.52%) and consumer (-0.42%). Meanwhile, those that ended in the green were service (0.97%), electricity (0.97%), industrial (0.72%), and construction (0.39%).

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Among the local stocks that fell the most were Panoro Minerals (-15.38%), Trevali Mining Corporation (-9.80%), Volcan Compañía Minera (-7.35%), Sociedad Minera El Brocal (-6.29%), and Credicorp (-5.22%).

In contrast, those that rose the most were Enel Generación Perú (3.53%), Unión Andina de Cementos (1.94%), Ferreycorp (1.45%), Empresa Siderúrgica del Perú (0.74%) and Cementos Pacasmayo (0.51%).

“Locally, the Peruvian Index fell by 2% following the fall of international stock markets during the day,” said Cesar Romero, head of research at Renta4 SAB.

Stocks closed lower on Wall Street Wednesday as dismal results from Target renewed fears that inflation is hitting U.S. companies.

Investors also further digested comments from Federal Reserve officials reaffirming their goals to control inflation. The S&P 500 fell 4% on its worst day since June 2020, closing at 3,923.68. The Nasdaq Composite fell 4.7% to 11,418.15, while the Dow retreated more than 1,100 points, or 3.6%.

The downward moves came as some weaker-than-expected earnings results from major retailers underscored the toll that inflation has taken on corporate profits, Romero noted.