Tue, Sep 23, 2014
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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali