S&P Dow Jones, Lima Stock Exchange launch S&P/BVL Peru Select index

By Tali Rackner

Norfolk, Va., Dec. 16 – S&P Dow Jones Indices signed an agreement in Peru with the Bolsa de Valores de Lima (BVL) to license, distribute and govern all of the BVL indexes, including a new version of their flagship index, Indice General de la Bolsa de Valores de Lima (IGBVL), according to a press release.

S&P Dow Jones and BVL also announced the launch of the S&P/BVL Peru Select index, the first index to result from the new agreement.

The index is designed to measure the performance of the largest and most liquid stocks listed on the BVL. It uses a modified market capitalization weighting scheme, providing investors with a broad, representative and easily replicable index covering the Peruvian equity market, the release said.

The S&P/BVL Peru Select index includes 19 securities from different sectors such as consumer staples, financials, materials, utilities, industrials and energy. No sector has more than 40% of participation in the index.

Both parties also announced that two BVL indexes, IGBVL and ISBVL, will be renamed S&P/BVL Peru General index and S&P/BVL Lima 25 index, respectively, effective in January. The methodology for calculating and publishing both indexes will also be updated effective the same date, and, as a result, they will not be rebalanced at the end of this year.

The S&P/BVL Peru General index is also being converted to a market capitalization weighting scheme.

S&P Dow Jones is part of New York-based McGraw-Hill Cos., a resource for index-based concepts, data and research.

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