Political Risk Latin America Blog @PolRiskLatam

Merged South American bourses off to slow start

Posted in News and Articles, Political Risk by politicalrisklatam on May 31, 2011

by Felipe Iturrieta and Anthony Boadle for Reuters, May 31st, 2011.

The stock markets of Chile, Peru and Colombia merged on Monday to become Latin America’s second-largest exchange, but trading was limited and faces tax hurdles coupled with political uncertainty in Peru.

The Integrated Latin American Market (MILA) allows cross-border electronic trading of shares of 565 companies listed in the three bourses, which have a combined market capitalization of $691 billion.

That’s greater than the Mexican stock market’s $453.5 billion and second only to Brazil’s bourse with $1.5 trillion.

Brokers said that the first “symbolic’ trades were by Colombian brokers who bought shares in Chilean airline LAN, electricity generator Endesa Chile and Peruvian zinc producer Volcan.

Officials said that MILA would boost liquidity and initial public offerings, providing a source of cheaper capital to companies in the fast-growing countries. (continue reading… )

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