Thu, Feb 23, 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. People - Kuwait wealth fund head Al Saad said to step down after 14 years[more]

    From Bloomberg.com: Kuwait Investment Authority is set to name Farouk Bastaki as managing director, replacing Bader Al Saad who ran the world's fifth-largest sovereign wealth fund for 14 years, a person familiar with the matter said. The KIA, as the fund is known, is finalizing the appointment, said

  2. Manager Profile - Eddie Lampert: a painful entanglement with Sears[more]

    From Moneyweek.com: "In the long run we are all dead." Lex in the Financial Times reached for the famous quote from John Maynard Keynes in January when, after a long and unforgiving decline, the clock finally appeared to be running out on Sears, the iconic US department store group. Yet the group's

  3. Investing - Hedge funds quit Aberdeen shorts as shares begin to recover, Hedge funds' next big short: U.S. malls, O'Connor fund owns 9.5% of Protalix Biotherapeutics, U.S. hedge fund takes position in Macau hotel The 13[more]

    Hedge funds quit Aberdeen shorts as shares begin to recover From Investmentweek.co.uk: The last two hedge funds to short Aberdeen Asset Management have removed their positions, as the fund group's shares begin to show signs of recovery after a difficult few years. According to the Financ

  4. Latin America, high yields and Asia Pacific strategies dominate hedge fund returns in January[more]

    Komfie Manalo, Opalesque Asia: Latin America (+7.04%), high yield (5.63%), and Asia-Pacific (+5.06%) strategies dominated hedge fund performance in January, data provider Hennesee Fund Research said. The bottom three strategies for the mont

  5. Investing - Hedge funds loading up on this dividend stock, The biggest hedge funds have been piling into bank stocks[more]

    Hedge funds loading up on this dividend stock From Incomeinvestors.com: Hedge funds are backing up the truck on Cameco Corp stock. Billionaire Jim Simons owns 389,000 shares. Other Wall Street titans - including Ray Dalio, Ken Griffin, and Chuck Royce - have been quietly building positio