Colombian traders were the first to buy shares through MILA, the combined stock exchange of Colombia, Chile and Peru, although it registered a slow start, Reuters reported Tuesday.
Brokers said that Colombian traders made the first trades of the Integrated Latin American Stock Exchange (MILA), buying shares in Chilean airline LAN, electricity generator Endesa and Chilean and Peruvian zinc producer Volcan.
One hurdle to the economic trading of shares of 565 companies, with a combined market capitalization of $691 billion, is that the three countries do not have a common tax regime and have different credit ratings.
Few brokerage houses have thus far registered to trade on MILA, contributing to a slow start for the exchange, although there is optimism about the future. “We have to give it time, but I think it is a very positive development,” said Andres Ortiz of Colombian brokerage house Global Securities.
Juan Pablo Cordoba, president of the Colombia Stock Exchange, also spoke of the positives of MILA, stating that “Investors will be able to diversify portfolios with access to a much larger market that will be absolutely transparent and straight forward.”
Colombian financial magazine Portafolio reported that the Colombian companies being traded on the integrated stock exchange are from various sectors, such as financial companies Bancolombia and Banco de Bogota, as well as energy company Pacific Rubiales and investors Grupo Suramericana.
It was also announced that in the coming days an index of the 40 most traded shares will be created by credit rating agency Standard and Poor’s and is to be called S&P MILA 40.