Mon, Feb 27, 2017
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. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s

  2. K2 Advisors : Why We Like Activist Hedge Fund Strategies and Some Thoughts on Alpha[more]

    Matthias Knab, Opalesque: Rob Christian, Senior Managing Director, Head of Research K2 Advisors, Franklin Templeton Solutions, writes on Harvest Exchange: When d

  3. Ex-Navy SEAL backed by Mario Gabelli, Jean-Marie Eveillard and other value giants off to strong start[more]

    From Valuewalk.com: Sententia Capital Management is not your average value focused hedge fund. The fund was founded by Michael Zapata, a former Navy Seal Team 6 Officer and has attracted funding from some of the best-known names in the value space. Mario Gabelli, Jean-Marie Eveillard from First Eagl

  4. Europe - 1 trillion euro non-performing loans are clogging EU lending channels[more]

    From Centralbanking.com: As much as 1 trillion euro of non-performing loans (NPLs) are still clogging the lending channel in the European Union. An EU asset management company (AMC) could address market failures in the secondary market for NPLs as part of a suite of measures designed to tackle the b

  5. Investing - Hedge funds' novel approach: investing for longer at lower returns, U.S. hedge fund Delta Partners lifts stake in Bellamy's, Hedge funds stockpile cobalt, electric carmakers on battery alert, Facebook is racking up the likes among the world's biggest hedge funds, Einhorn affirms gold on Trump uncertainty[more]

    Hedge funds' novel approach: investing for longer at lower returns From FNLondon.com: Hedge funds are known for making short-term bets, dipping quickly in and out of markets to take advantage of swings in prices. But, under pressure to innovate, some big-name managers are looking at ways