May 01 2009
Peru Corporates: Hope for Metal Strength
As with Colombia’s corporates, Peru’s enjoy domestic macro conditions better than the regional average, and have not over-levered or dabbled in derivatives. The country’s miners have also enjoyed good times, but now must hope for a turnaround in prices that dipped last year.
Perus growth is expected to slow this year, to 3.3% from 9.8% last year according to Bank of America. Metals prices, still well off of highs hit in the last few years, have shown signs of rebound but should remain volatile. Its reasonable to expect that companies relying on base metals wont do as well this year as last year, says Victor Flores, analyst at HSBC. Miners with the high exposure to gold are best positioned.
Little by little confidence is returning, says Carlos Galvez, ...
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