Copper Stocks Hurt As Worries Continue In Peru
Bryan Edward Leighton
June 09, 2011
As election results were tallied, Ollanta Humala was the reported winner with 52.6% of the vote. Humala is known as a left-wing nationalist that may bring the country the way of Hugo Chavez. The stock market in Peru collapsed 14% on these results as fears of nationalization spread quickly. Stocks all over the world with ties to Peru also collapsed. Precious metals miner Compania de Minas Buenaventura SA (NYSE:BVN) dropped from $42.00 to $35.75 and copper producer Southern Copper Corporation (NYSE:SCCO) fell 10% on this news.
In the short term these stocks will most likely remain under significant pressure until more clarification can be gained. While their valuation seems attractive, if nationalization does become a reality, they will go much lower.
Gareth Soloway
InTheMoneyStocks.com
In the short term these stocks will most likely remain under significant pressure until more clarification can be gained. While their valuation seems attractive, if nationalization does become a reality, they will go much lower.
Gareth Soloway
InTheMoneyStocks.com
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