Santiago, Chile (UPI) Apr 7, 2011
Plans for a three-nation joint stock market linking Chile, Colombia and Peru received a boost after tests of an integrated trading system showed encouraging results, officials said.
Market integration has long been the declared goal of Latin American states as part of other ambitious and wide-ranging plans for different versions of the EU model.
The 2009 economic downturn put a dampener on the plans as Chile paid heavily for its interconnectivity with world markets. Other, less-connected markets in the region weren't so directly affected by the stock markets' crash in that year and fluctuations in the following months.
Economic planners argue the stock market integration would help stimulate economies of the three states, of which Chile is by far the strongest and most advanced, with more streamlined financial regulatory framework and incentives than those in either Colombia or Peru.
Colombia made quick strides with major economic reforms after Juan Manuel Santos took over as president in August 2010. Colombia's turbulent politics and continued -- and inconclusive -- war on drug overlords kept investors away but the country's ties with China and other East Asian nations grew despite security concerns.
Officials said the joint market would be called the Integrated Latin American Market -- Mila -- and would likely go live May 30. Extensive tests on the equipment and communications gave operators confidence that Mila could start trading on that date, officials said.
At least 560 companies are likely to be listed on the merged market making it the second largest market by capitalization after Sao Paulo. The initial scale of the integrated market is modest compared to Sao Paulo, which trades more than 100 million shares on an average day.
Optimism over the planned opening of the new market pushed stock prices at the highest levels since June 2008 -- before the financial crisis hit Chile and its neighbors.
Chile has been seeking various means to moderate rises in its currency and opening new avenues for exports amid fears the overvalued peso might discourage importers and push its commodities out of international markets. Similar fears found resonance in Colombia and Peru and other Latin American commodity exporters.
The rise of Mila raises questions over evolving trade groups in Latin America as negotiations continue over a major deal with the European Union under the umbrella of Mercosur, the regional trade bloc.
Chile has seen its growth forge ahead despite major shocks in 2010 from a magnitude-8.8 earthquake Feb. 27, 2010, and subsequent aftershocks. Infrastructural damage across Chile has been widespread but reconstruction activity has helped economic growth.
Share This Article With Planet Earth
Global Trade News
Work set to start on long-awaited China Disneyland
Shanghai (AFP) April 8, 2011
Walt Disney Co. was expected to break ground Friday on mainland China's long-awaited first Disneyland theme park in hopes that Mickey Mouse and friends will prove a hit in the country of 1.3 billion. Walt Disney Co. chief executive Bob Iger was expected to lead a ground-breaking ceremony in Shanghai, capping more than a decade of negotiations with the Chinese government to bring the Magic Ki ... read more
Mekong Countries To Convene Additional Meeting On Xayaburi Project|
Facebook makes data centers greener and cheaper
Developing Commercial Hydrokinetic Energy Projects
New Zealand to slash emissions by half
Venezuela fights inflation in recovery bid
Exploring The Possibilities For Zeolites
Museveni tightens grip on Uganda's oil
Decision on South Stream route this summer
Manitoba wind farm comes online
Alstom Announces Commercial Operation Of First North American Wind Farms
Vestas unveils new offshore turbine
US hopes to resolve China wind turbine rift
GE to build massive solar plant
BlueChip Energy Announces Development Of 40MW Solar Farm In Florida
Industry Analyst Predicts 50 Percent Drop In Solar Project Costs
SolarBridge Named 2011 Edison Best New Product Awards Gold Winner
Researchers Improve Path To Producing Uranium Compounds For Advanced Nuclear Fuels
Toshiba 'could decommission Japan reactors in 10 years'
Japan nuclear watchdog tightens safety rules
German nuclear companies halt environmental payments
Economics, Physics Are Roadblocks For Mass-Scale Algae Biodiesel Production
Advance Toward Making Biodegradable Plastics From Waste Chicken Features
Short Rotation Energy Crops Could Help Meet UK's Renewable Energy Targets
Boeing Issues First Latin American Study On Jatropha Sustainability
What Future for Chang'e-2
China setting up new rocket production base
China's Tiangong-1 To Be Launched By Modified Long March II-F Rocket
China Expects To Launch Fifth Lunar Probe Chang'e-5 In 2017
Emissions Trading Does Not Cause Pollution Hot Spots
US Senate defeats bid to gut climate efforts
Climate Change Is Making Our Environment 'Bluer'
Climate change called security threat
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement|