JP Morgan Reduces the Recommendation for Peruvian Shares to Neutral, after PPK’s Resignation

0

Peru had the best performance in Latin America market in the last 30 days.

JP Morgan reduced its GDP growth forecast to 3.5% from the 4.2% it forecast at the beginning of the year, according to information from Gestión.

The recommendations for Peru’s stock, traded on the stock exchange, fell to “neutral” from “overweight” after Pedro Pablo Kuczynski (PPK) resigned the Peruvian presidency, according to a note from JP Morgan analysts led by Emy Shayo, cited by Gestión.

In addition, JP Morgan reduced its GDP growth forecast to 3.5% from 4.2% that it anticipated at the beginning of 2018. They also informed that Peru had the best performance in the Latin American market in the last 30 days, and the second-best accumulated of the year.

Also, a few days ago Oscar Caipo, KPMG’s main partner, analyzed the economic environment of Peru, based on the latest results on the Growth Promise Indicator, developed by KPMG, known as GPI, and determined that the country has dropped three positions in the region.

According to him, this situation is due to the political crisis that developed in the country due to PPK’s vacancy request, that led to him finally resigning his position.

“What we have is a problem of trust and that is what brings private investment, which represents 80% of the total investment,” Caipo said.

(Source)
(Cover Photo Pixabay)

Don’t Miss:

JP Morgan: Political Situation Affects Peru’s Economic Growth

KPMG: “Peru Is About to Lose its Best Indicator of Economic Stability”

 

Comments

comments

Ermelinda is a journalist from Caracas, Venezuela. She has a Master’s degree in Digital Journalism and a technical degree in Veterinary Assistance she pursued because of her love for animals. She likes to do sports, but especially ballet, which she has practiced for almost 20 years. Her passion is to read, write, and blog about different topics, as well as travel whenever she can.