This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Shares Of Credicorp Plunge On Peruvian Election

NEW YORK (AP) â¿¿ Shares of South American banking company Credicorp Ltd. plummeted Monday over fears of political discord in Peru. Raymond James analyst Federico Rey Marino downgraded the company's shares after a former leftist army officer, Ollanta Humala, narrowly defeated the daughter of disgraced Peruvian ex-President Alberto Fujimori in the presidential election.

THE SPARK: Ollanta Humala, 48, won a closely fought runoff election Sunday against the daughter of the one-time president that undertook a major overhaul of the economic system in Peru, where Credicorp is based. Humala has promised to give Peru's poor a greater share of the country's mineral wealth. He has pledged to honor the free market, but has also said he will put Peruvians first.

Humala told supporters Sunday night he'd work to convert a decade-long economic boom that is the envy of Latin America into "the great motor of the social inclusion Peruvians desire." He says he'll do so by taxing windfall mining profits and exporting less natural gas so Peruvians get it cheaper.

Investors have pledged more than $40 billion over the next decade to develop gold, silver, copper and other mining operations in rich Andean lodes.

THE BIG PICTURE: Investors are uncertain what Humala's surprise victory could mean for Peru's economy and its currency. That could directly affect Credicorp because the company's banking and insurance business is centered on the Peruvian market. The company also does business in Bolivia, and Panama.

Most investors thought Humala's challenger, 36-year-old Keiko Fujimori, would win the election, Marino wrote in a note to clients Monday.

"In our view, Credicorp shares were pricing in Keiko Fujimori's victory, after Fujimori led in the polls during the past four weeks before the election," Marino wrote. "We foresee an increase in the sovereign spread and a volatile foreign exchange rate in the short term, until uncertainties surrounding Humala's economic program dissipate."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs