Lima stock exchange reaches record high

“A good time to make a short term profit”

Pomalca up 95.9% and General Index up 23.2% this year 

The Lima Stock Exchange started the week with a rise, closing up on Monday and reaching a new record high in a session driven by mineral stocks as a result of high metal prices on the international market and through further increases in industry.

The General Index of the Lima Exchange (IGRA), the principal index, rose 1.17% to 15,868.66 points, while the Selective Index (ISEL), which is made up of the 15 leading stocks, gained 0.87% to reach 26,705.32. Mineral stocks advanced an average of 1.62%, encouraged by production forecasts and high metals prices.

Three month copper futures closed in London at US$6,265 per ton, as against $6,140 on Friday. Zinc rose from $3,260 6o $3,285/$3,290.

Shares in copper producer Cerro Verde rose 0.41% to $17.35, and those of zinc producer Volcan rose 4.42% to 46.99 soles. [Editor’s note: there is confusion over whether this rise was for Volcan or metal producer El Brocal]

“Brocal rose through forecasts and hopes regarding its new projects. In other sectors, stocks such as SiderPerú, Lindley and Austral rose, so it’s a good time to buy if you’re looking for a short-term profit,” said Leoncio Altamirano, of the Juan Magot trading company.

On the other hand, industrial stocks rose an average of 1.39%. Bottling corporation JR Lindley was among the leaders, with a 2.63% increase, and SiderPerú went up 4.53 % to 2.31 soles.

In agriculture, sugar company Pomalca led the running with a stunning 14% increase to 0.57 soles, making an overall rise of 95.9% so far this year.Analysts explain this skyrocketing rise as due to prospects for ethanol biofuel production, and due to the availability of sugar fields in Pomalca that give room for growth.

So far this year, the General Index of the Peruvian Stock Exchange has risen 23.2%, as against 23.8% in the same period of 2006. Trading on the floor in Lima on Monday amounted to 47.8 million soles, or around US$15 million, in 2,138 transactions.

See also:
Lima stock indices down

One Response

  1. I would short the IGBVL if I knew how…

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