UPDATE 1-Peruvian stocks tumble as leftist Sanchez gains ahead of presidential runoff

شركة ساذرن كوبر كوربوريشن

Southern Copper Corporation

SCCO

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Recasts on share movements

- Peruvian stocks tumbled on Friday after polls showed leftist presidential candidate Roberto Sanchez slightly ahead before Sunday's runoff, deepening investor concern about the outlook for growth, investment and the mining sector.

  • Lima's benchmark stock index .MXNUAMPESCPGPE fell more than 4%, while Peru-linked mining shares Southern Copper SCCO.N and Buenaventura BUENAVC1.LM each dropped more than 9%, pointing to rising market wariness over the possibility of a Sanchez victory.


  • An Ipsos poll published Thursday showed Sanchez with 43.8% support and Fujimori with 43.2%, leaving the candidates in a statistical tie within the margin of error. About 13% of respondents said they would cast a blank or spoiled ballot.


  • "Peru's market is down after polls showed Sanchez slightly above (Fujimori)," Alberto Arispe, chief executive of local brokerage Kallpa Securities SAB, wrote on X.


  • Investors remain concerned that a Sanchez administration could weaken investment, hurt corporate earnings and lead to changes in mining policy, despite the candidate's efforts in recent weeks to moderate his message.


  • The Peruvian sol =PEN also weakened 1.07% to 3.444/3.447 per U.S. dollar, though that move came amid a broader selloff in Latin American currencies as markets priced in another rate hike before year-end and the dollar strengthened.


  • Political tensions added to uncertainty before Sunday's vote, with observers warning that the period after the election could prove just as important as the ballot itself because of the risk of legal challenges, fraud allegations and delays in confirming the result.