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Peruvian shares continue to plunge, -9.3% for the week as speculation grows Ollanta Humala,...

Peruvian shares continue to plunge, -9.3% for the week as speculation grows Ollanta Humala, running on a Chavez-lite platform, will upset Keiko Fujimori in this weekend's presidential election. A win by Fujimori could result in a major stock rally. Peru ETF: EPU. Major bank: BAP.
Comments (1)
  • kmi
    , contributor
    Comments (3984) | Send Message
     
    EPU is practically a pure commodities play and should also be considered in that context.

     

    A Fujimori win is expected to boost commodity investment and sales of mining rights and boost GDP, where a Humala win is expected to result in more restrictive export controls or tariffs and an emphasis on indigenous people's land rights.

     

    Land rights are only recently being registered and mining agreements have traditionally ignored indigenous peoples claims to land ownership and the issue is mostly unresolved and likely to remain so for the foreseeable future.
    2 Jun 2011, 10:24 AM Reply Like
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