/BVL: Why is the entry of Volcan and G&M to the MSCI important?
BVL: Why is the entry of Volcan and G&M to the MSCI important?

BVL: Why is the entry of Volcan and G&M to the MSCI important?

Today the incorporation of the titles Volcan B and G&M ADR to the MSCI Global Small Cap was known, after the signing of stock market indices of Morgan Stanley rebalances its Global Indicators. With Volcan and Graña y Montero, there are already five Peruvian companies recognized by this indexer and that reaffirm the position of the Lima Stock Exchange ( BVL ) as an “emerging market” .

As it is recalled, last year the Peruvian capital market went through a crisis that almost cost it reclassification to the frontier market and with it a possible capital flight of between US $ 1,500 million and US $ 5,000 million, as calculated by the BVL at the time. That fear now seems to have already faded.

“We already have five names and this means that we no longer have the risk with which we were to move to ‘border’ “, says Christian Laub, director and former president of the BVL.” ​​The other important thing is that they have been included in the indices of ‘Small Cap’ and that will make more investors buy and have to buy the shares of Graña y Montero and Volcan and what has to be helping the liquidity of the stock market in general “, points out. Marco Antonio Zaldívar, president of the BVL agrees and adds that this event “will consolidate the trading volumes of the Peruvian stock market.”

For his part, Alberto Arispe , general manager of Kallpa SAB, points out that “greater liquidity is the main variable for the further development of a stock market.” Many investment funds replicate what the MSCI indicates and, therefore, buy the shares that comprise it, he explains Likewise, although other funds do not replicate it, they do take it into account.

With all this, the Lima market is strengthening and its effects will be seen soon. “In markets small like In Peru, the entry of foreign investment funds has a positive impact on the market price of the shares, especially in the short term, “concludes Arispe.

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