As a likely victor of Peru’s presidential election emerges, Peruvian shares drop 10.29%. The Peru ETF (NYSE:EPU) is down 18.72% in the last three months, with the nation’s largest banking institution, Credicorp (NYSE:BAP), down 15.33%.
Nationalist candidate Ollanta Humala seems to have won the presidential runoff election held over the weekend in Peru, narrowly beating Keiko Fujimori, daughter of the former President Alberto Fujimori who is currently serving a long prison sentence for massacres carried out under his 10-year authoritarian rule. Humala led a failed coup against President Fujimori in 2000 and lost the 2006 presidential election to Alan Garcia.
While not all votes have been counted, including overseas ballots which are expected to largely go to Fujimori, she has already conceded to Humala, with 84.4% of the ballots giving Humala 50.7% of the vote, ahead of Fujimori at 49.29%.
Humala has often been compared to Venezuelan socialist President Hugo Chavez, leading Peruvian shares to drop over the last few months in anticipation of a Humala victory that might be good for human rights, but not for business. In order to distance himself from Chavez, Humala has stressed freedom of the press and the right to private property in his campaign, promising a “commitment to the Peruvian (NYSE:EPU) people of economic growth with social inclusion” while seeking Latin American unity.