19:50 | New York, Sep. 30.
Morgan Stanley Capital International retained the MSCI Peru Index as part of Emerging Markets.
In August Morgan Stanley Capital International (MSCI) announced it would consult the investment community on the potential market reclassification of Peruvian Index from Emerging to Frontier Market.
The Peruvian government implemented measures to add more liquidity to the Lima Stock Exchange (BVL).
MSCI recognized the "positive momentum" in terms of the efforts undertaken by both, Peruvian authorities and the BVL to enhance the liquidity in the Peruvian stock market through a number of initiatives.
Among comprised measures are: The adoption of an exemption to the capital gains tax and enhancements in the equity trading infrastructure. Many of these initiatives may only start to have a measurable impact in the first half of 2016 while others are yet to be implemented, it affirmed.
Thus, MSCI will monitor the developments on the BVL over the coming months and reassess the market classification of the Peru Index as part of the 2016 Annual Market Classification Review.
It warned the non-fulfilment by Peruvian authorities and the stock exchange to reverse the declining trend in liquidity in the equity market, which has resulted in the reduction of the investment opportunity set for international investors, may lead to the decision to reclassify the MSCI Peru Index to Frontier Markets in June 2016.
(END) JJN/JJN/MVB
Published: 9/30/2015