Investing in Peru

Peru FlagPeru is a Latin American country with an emerging, market-oriented economy that has been among the top performers in South America. Rich in natural resources, it is a major exporter of gold, copper, zinc, and fish.

 

Peru’s Main Industries

Peru is economically known for its strength in:

  • Agriculture Sector
    • Fishing
    • Artichokes, grapes, avocadoes, mangoes,
    • Cotton
    • Coffee
    • Sugar
    • Services Sector
      • Tourism
      • Natural Resources
        • Copper
        • Gold
        • Silver
        • Petroleum
        • Timber
        • Iron ore
        • Coal
        • Natural gas
        • Mining Sector
          • Gold
          • Coal
          • Copper
          • Zinc
          • Silver
          • Iron Ore
          • Manufacturing and Industrial Sector
            • Metal mechanics
            • Tobacco processing
            • Food processing
            • Textile

Peru’s Main Stock Exchanges

 The main stock exchange in Peru is:

  1. 1.      Bolsa de Valores y Productos de Asunción (BVPASA)
    1. Established in 1977 and is Peru’s only stock exchange
    2. Exchange provides trading services in equities and debt securities of both public and private companies
    3. Stock Index

i.     IGBVL index

 

Glimpse into Peru’s Equity Market

Prior to the global financial crisis in 2008, Peru experienced economic growth that was among the top-performers in Latin America (2007 and 2008). Political stability and liberalised economic policies have made Peru a very open investment regime, attracting significant foreign investment and capital

Equities performed exceptionally well in 2009 and 2010, with the IGBVL index rising 101% and 65%, respectively.  Between the same periods, the market capitalization of its exchange grew by 43% from $US 69.7 billion to $US 99.8 billion.

Peru’s 10 Most Profitable Companies in 2010

Peru 10 Most Profitable Companies

Ways to Invest in Peru

There are a couple of different ways to invest in Peruvian companies:

  • Through a Peruvian Bank or foreign one located in Peru
    • BBVA Banco Continental
    • Banco Financiero del Peru
    • Bank of Nova Scotia
    • JP Morgan Chase Bank
    • Banco Standard Chartered
    • Citibank
    • Peruvian ETFs
      • EPU:NYSEArca – Peruvian ETF that tracks the MSCI ALL Peru Capped Index
      • Through some international online brokers:
        • MB Trading
        • Interactive Brokers
        • TD Ameritrade
        • E-Trade
        • Questrade
        • optionsXpress
        • optionshouse
        • tradeMONSTER
        • Charles Schwab