LOS ANGELES: Peru's election came to an end on Sunday, with Ollanta Humala being victorious in the tightly contested vote. His supporters celebrated into the early morning hours, but investors' are now worried that his win could spell economic trouble for the South American country. Those fears came to a head on Monday, with the Stock Market plunging 12.5 percent before being halted to stop further drops. It was the largest single day drop in Peru's history, local media reported. Investors are worried that the leftist Humala could reverse free market reforms the previous government had implemented. Humala, a former army officer, has vowed to keep the country's economic engine humming even as he reaches out to the poor. But his critics worry he might turn the country into a socialist experiment like Venezuela or Bolivia. Voters overcame those fears as they handed him a victory. With 94 percent of the ballots counted, the National Election Office said Humala had received 51.4 percent of the vote, versus Keiko Fujimori's 48.6 percent. Fujimori, a right-wing former congresswoman, said in her concession speech that it is “fundamental for the country to continue along its economic path and it is fundamental to have clear rules… so we don't have situations like the one we saw today at the stock market.” Her concession came as analysts and investors were clamoring for Humala to name his economic cabinet. “We need more than words; we need concrete actions right now,” said Ernesto Ferrand, a trader with Andes Securities. “Investors don't know what to think.” For now, analysts in the country told Bikya Masr that they believe the worries and stock market difficulties are likely to continue, but they see the future as bright for the country. “Peru just went through a tightly contested election so like many places when a leftist comes to power, economy is a major worry, but I do not believe there is much to be concerned about right now,” said Alejandro Gomez, an investment banker in the capital Lima. BM
