The Lima Stock Exchange closed the session this Thursday, January 19th, with gains in most of its indices, recording 12 up indicators and 4 down indicators. And that’s how it happened S&P/BVL Peru General Index, Lima’s most representative stock market, rose 0.35% to 22,973.34 points. He in turn S&P/BVL Peru Selective Indexwhich consists of the most traded shares in the local market, gained 0.48% to trade at 600.86 units.
“The protests and the social situation on the stock market have not had a direct impact so far, only one share has traded on the stock exchange today at more than S/1 million,” said César Romero, Research Director at Renta4 SAB.
Services and Electricity sectors were the biggest gainers for the day, up 3.28%, followed by Mining (0.88%), Financials (0.20%) and Consumer Goods (0.12%). In contrast, construction (-1.53%) and industry (-1.05%) recorded losses.
Among the local companies that recorded the biggest losses were: Aenza (-6.25%), Cementos Pacasmayo (-3.63%) and Hidrandina (-2.52%). While those that recorded gains were: Enel Distribución (5.82%), Enel Generación (4.53%) and Banco de Crédito del Perú (3.33%).
US market closes near daily lows
According to Renta4 SAB’s head of research, US stocks fell as investors worried about the possibility of a recession as the Federal Reserve (Fed) hikes interest rates to fight inflation. The Dow Jones fell 253 points, or 0.8%, for the third straight day. The S&P 500 lost 0.8% and the Nasdaq Composite lost 1%.
“Investors are concerned that the Fed is at risk of triggering a recession United States of America if you keep raising interest rates in a slowing economy to control inflation. Fed Governor Lael Brainard said in a statement Thursday that further rate hikes may be needed to bring inflation down,” Romero said.
Jobless claims hit their lowest level since September and were much lower than economists had expected for the week ending Jan. 14, signaling continued strength in the labor market. This does not bode well for investors who want to see a less aggressive Fed, which has been eyeing an easy job market amid persistently high inflation.