There is an upside to the volume downside in Peru. It could prompt companies, including some of the 25 held by EPU, to start repurchasing shares to bolster liquidity for Lima-listed shares, according to Bloomberg.
“Fearing a downgrade, the Peruvian government promptly introduced a capital gains tax exemption, eased restrictions on market makers and automated trading, and officials from the government and Lima Stock exchange made a trip to New York to explain their plans to boost trading volumes over the next two to three years,” notes Emerging Equity.
iShares MSCI All Peru Capped ETF
