Fri, Feb 27, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Peru, Chile, Columbia stock markets merge to create Andean stock exchange

Monday, May 30, 2011

Hugo Chavez.
Opalesque Industry Update – The stock markets of Chile, Columbia and Peru officially merge on Monday to capitalize on demand for “emerging” Latin America. The move also effectively creates the second largest bourse in the region, various media reports said.

But more significantly, the alliance of the stock markets of the three right-leaning nations that spans most of South America's Pacific coast, is seen to provide investors wider exposure to assets linked to the region’s natural resources and its rising middle class.

The Mercados Integrados LatinoAmericanos exchange (MILA) will commence operations on May 30th. According to Bruno Del Alma, Chief Executive of exchange-traded fund firm Global X Funds, the new stock exchange merged together three countries that “really are the emerging part market of Latin America.”

Del Alma said MILA, “was a big factor in terms of us thinking about the region, but it underpins a much broader story about both the growth rates and growing political and economic integration across those three market,” MarketWatch reported.

Indeed, the integrated markets represent three of the most vital economies in Latin America. Peru and Chile are expected to register the fastest rates of economic growth in Latin America for 2011. Data from the International Monetary Fund forecasted Peru's economy to expand at a rate of 7.5% and Chile’s at 5.9%. The IMF expects the countries to lead growth in Latin America in 2012. Peru's primary export is gold while Chile is the largest copper producer in the world.

Despite having the smallest market share in MILA, Peru is expected to dictate the success of the newly-created stock exchange in the coming months, analysts predicted.

Also, the merged stock exchange may present a challenge to another regional grouping, the Bolivirian Alliance, led by left-wing leader Venezuelan President Hugo Chavez.

Sebastian Geuvara of research firm Ipsos Consultaria which is based in Lima said, “There's a clear difference in policy organization in this group of countries… There's a conscious effort to encourage integration between these like-minded countries.”
- Precy Dumlao

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Adamas Asset Management and Ping An Insurance to co-manage $500m debt fund[more]

    Komfie Manalo, Opalesque Asia: Hong Kong-based Adamas Asset Management and Ping An Insurance Group, one of China’s largest financial institutions, have finalized a memorandum of und

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie