Timber! Peru Stocks Getting Killed On Election Implications

Peru stocks are getting crushed this morning on concerns over the Peru national election, leading to investors selling shares. Names like iShares MSCI All Peru Capped Index EPU, Compania de Minas Buenaventura SA BVN and BPZ Resources BPZ are all getting hit sharply this morning on news that opposition candidate Ollanta Humala claimed victory last night in a presidential runoff. Humala wants a larger presence of state control in the country's natural resources, hence the sharp drop in the mining stocks. BPZ gets 100% of its revenues from Peru, according to Bloomberg. Last week, Humala was trailing the Keiko Fujimori by 4.65, and Peruvian stocks jumped on the news. Once word came out yesterday that Humala claimed he had won, fortunes reversed course and stocks are getting hit in pre-market trading. Investors fear an uncertain future if Humala wins, and if there is anything investors hate, it is uncertainty.