Capital Markets

The Lima Stock Exchange (Bolsa de Valores de Lima, BVL) has had a difficult three years in 2013-15, having become somewhat less active and less liquid than its peers. The market capitalisation of listed Peruvian companies was worth 38.9% of GDP in 2014, according to the latest available comparable figures from the World Bank – ahead of Mexico (37.1%) and Colombia (38.8%) but behind Chile (90.4%). However, at only 1.8% of GDP in 2014, the BVL lagged behind in terms of the total value of shares traded, compared to Colombia (5.5%), Mexico (11%) and Chile (10.5%). During 2015, the BVL’s General Index was consistently down on year-earlier levels and by September it had slumped to 10,030, a fall o 38.2% y-o-y. Nonetheless, market players believe conditions point to a recovery in 2016, as the macroeconomic environment improves and investment returns to the region, encouraged by the strength of the US dollar relative to Latin American currencies. This chapter contains an interview with Christian Laub, President, Lima Stock Exchange.