The election's impact on the Port of Callao is still unknown, though Humala has said he opposes private concessions of the docks. DP World and APM Terminals have brought foreign management to the port.
Peru’s benchmark stock index plunged 12.5% Monday. Investors rushed for the exits on fears that the country’s next president, populist Ollanta Humala, will push the country sharply to the left.
The iShares MSCI Peru (EPU) exchange traded fund gapped down and sank 14% on news that the leftist Humala had won Sunday’s election. That ETF now shows a 22% year-to-date loss.
Investors in almost any market don’t like to see new governments coming in with promises of higher taxes and central planning.
With Peru, the damage is exaggerated because exports of natural resources, including metal orders, produce and fish meal, make up a large percentage of the economy.
But overall economic concerns have been pushing these indexes lower for some time. Brazil in particular had been a favorite among investors seeking emerging-market returns.