Andina

Peru to meet MSCI to avoid being reclassified as frontier market

centro financiero, Lima Perú.Foto: Archivo

centro financiero, Lima Perú.Foto: Archivo

08:31 | Lima, Aug. 27.

A Peruvian delegation will travel to New York on September 14 to meet Morgan Stanley Capital International (MSCI) analysts and avoid being reclassified as frontier market, Lima Stock Exchange (BVL) President Christian Laub informed.

The said mission consists of Economy and Finance Minister Alonso Segura and BVL senior officials, who will explain the reasons why Peru should not be considered a frontier market.

“All our economic and market fundamentals do not justify our being classified as frontier market. We are currently facing an unusual situation; decline in metal prices and economic slowdown have caused BVL trading volume to decrease, but this is a temporary rather than a structural situation,” Laub said.

In this sense, he claimed BVL is being assessed by MSCI due to exogenous factors rather than internal measures. 

“The exogenous factors are putting us on the edge of the frontier market, but both private and public sectors have been working to reverse this situation, which is shown in this bill aimed at improving the stock market,” he added.

Reclassifying Peruvian stock market as an emerging one, which would occur on September 30, would not only result in private capital conservation but in the integration of the Latin American Integrated Market (MILA).

(END) RGP/RGP/RMB

Published: 8/27/2015
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