Peru's capital market has better perspective in 2021

14:08 | Lima, Jan. 21.

The gradual reactivation of economies, the development of COVID-19 vaccines, the start of vaccination, and the increased international demand for metals will boost global production and the expected return on stocks and corporate debt issues.

The novel coronavirus pandemic significantly hit the world economy and that of Peru in the first quarter of 2020, due to containment measures; however, the stage of reactivation has begun since then.

The benchmark of the world stock market, the Dow Jones Industrial Average (DJIA), ended the year with an annual gain of 7.1% after a big fall in March 2020.

Additionally, the S&P 500 and Nasdaq technology indexes rose 16% and 43.4%, respectively.

So far this year, these indexes continue their upward trend and increase profits.

At the local level, the Lima Stock Exchange (BVL) faced a very eventful 2020 but ended the year with an increase of 1.44% in the general index and of 3.76% in the selective index, regarding yields in Peruvian Soles. So far this year, they continue to expand.

One factor that various analysts agree on is the influence of the global metal market on the evolution of the BVL; therefore, the better copper price also boosts the projections.

The red metal price, after an increase of 6.32% in 2019, rose 25.77% to US$3.514 per pound in 2020. So far this year, it continues to rise and sits at an average of US$3.60 per pound.

The Ministry of Economy and Finance (MEF) projected that the Peruvian economy will recover faster than expected and forecasts an annual expansion of 10% of GDP for this year.


Published: 1/21/2021
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