Peru Stock Exchange

Personal finances

6.9.2025 7:27 AM

Peru Stock Exchange

The Lima Stock Exchange (BVL) is the main stock market in Peru and plays a crucial role in the country's economy. If you are interested in the investment world in Peru, it is essential to understand how the stock market works and how you can take advantage of it to grow your wealth. In this article, we'll explore what the Lima Stock Exchange is, how it works, and how you can start investing in it.

What is the Lima Stock Exchange?

The Lima Stock Exchange is a financial institution where stocks, bonds and other securities are bought and sold. Founded in 1860, the BVL facilitates the exchange of securities between investors, providing a safe and regulated place to carry out financial transactions.

History and Development

1. Origins in the 19th century (1860)

The history of the Stock Exchange in Peru officially begins in 1860, with the founding of the Lima Stock Exchange. At that time, Peru was experiencing a period of strong mining and commercial growth, so there was a need for an institution that would facilitate the exchange of shares and bonds of mainly mining and commercial companies.

2. First stock market operation (1898)

Although it was founded in 1860, The first documented stock market transaction occurred in 1898, when trading began with shares of domestic companies. These operations were quite rudimentary and were carried out on paper, with meetings between buyers and sellers in salons or trading houses in downtown Lima.

3. Modern transformation and official status (1951-1971)

During the 20th century, especially between 1950 and 1970, the stock market underwent a process of institutionalization:

  • In 1951, was enacted the Securities Market Act, which formalized and regulated the functioning of the stock market.
  • In 1971, the Stock Exchange is reorganized under the name of Bolsa de Valores de Lima S.A., a structure that it retains to this day.

This reorganization also included clearer rules for the listing of companies, supervisory mechanisms and a model of partial self-regulation.

4. Boom and Crisis: 80s and 90s

The 80s were turbulent for the Peruvian economy, with hyperinflation, internal conflicts and low investment. However:

  • In 1990, the government of Alberto Fujimori implemented economic reforms that liberalized the market and promoted foreign investment.
  • This caused a reactivation of the stock market in the 90s, especially in sectors such as mining, banking and services.

At this stage, the number of listed companies expanded and ties with institutional investors were strengthened.

5. Technological modernization (2000 onwards)

Since 2000, the Lima Stock Exchange has undergone a key technological modernization:

  • It was introduced the Electronic Continuous Trading System (CAVALI), allowing purchase/sale in real time.
  • They were implemented electronic platforms for greater transparency and efficiency.
  • It was released on S&P/BVL General Index, together with sectoral indices.

In 2011, the BVL officially joined the MILA (Latin American Integrated Market) together with Chile, Colombia and Mexico, opening up new opportunities for investors.

6. Present (2020—2025)

Today, the Lima Stock Exchange is a pillar of the Peruvian financial system, and although its volume is smaller than that of other countries in the region, it plays a key role:

  • It is one of the markets with highest concentration in mining, given the importance of the sector in Peru.
  • It is focused on attracting more issuers, innovating in financial products and improving stock market education of the country.
  • In 2025, the BVL has more than 250 financial instruments listed and maintains a capitalization that exceeds USD 150 billion in active actions.

Role in the Economy

The BVL not only allows companies to raise capital to expand, but it also offers investors the opportunity to participate in the country's economic growth. By investing in the stock market, individuals can earn returns based on the performance of the companies in which they invest.

How the Lima Stock Exchange Works

The BVL operates in a similar way to other stock exchanges around the world. Here are the basic steps of how it works:

List of Companies

For a company to be able to sell shares in the BVL, it must first be listed on the stock exchange. This process involves meeting certain financial and regulatory requirements to ensure transparency and investor protection.

Buying and Selling Shares

Once a company is listed, investors can buy and sell their shares through financial intermediaries, also known as stockbrokers. Transactions are made in real time, and stock prices fluctuate based on supply and demand.

Stock Market Indices

The BVL has several indices that measure market performance. The best known is the General Index of the Lima Stock Exchange (IGBVL), which reflects the behavior of the most representative stocks in the Peruvian market.

Advantages of Investing in the Lima Stock Exchange

Investing in the BVL offers several advantages for investors looking to diversify their portfolio and maximize their returns.

Diversification

The BVL offers access to a wide range of sectors, including mining, banking, and consumer, allowing investors to diversify their investments and mitigate risks.

Growth Opportunities

Peru is a country with solid economic growth and positive long-term prospects. Investing in the BVL allows investors to benefit from the growth of the Peruvian economy.

Liquidity

The BVL provides a liquid market where investors can buy and sell shares quickly, making it easy to adjust their investment portfolios in response to market conditions.

How to Start Investing in the Lima Stock Exchange

If you're interested in investing in the BVL, here are some steps you can take to get started:

Open an Investment Account

The first step is to open an investment account with an authorized broker in Peru. The broker will help you execute your buy and sell orders and provide you with advice on your investments.

Research and Analysis

Before investing, it's crucial to research the companies you're interested in. Analyze your financial performance, industry trends, and overall economic outlook to make informed decisions.

Diversify Your Portfolio

Don't put all your resources in one company or industry. Diversifying your portfolio is essential to reduce risk and maximize potential returns.

Conclusion

The Lima Stock Exchange is a vital component of the Peruvian financial system and offers numerous opportunities for investors. With an appropriate approach and a well-planned strategy, investing in BVL can be an effective way to grow your wealth and participate in Peru's economic growth. Always remember to do thorough research and consider your financial objectives before making investment decisions.