Limited trading is slated to start on Monday on the MILA bourse that will integrate the stock exchanges of Colombia, Chile and Peru to help boost liquidity and initial public offerings, officials said on Friday. MILA, which cross-lists shares of companies in all three countries, will jump ahead of Mexico's exchange and trail only Brazil's bourse in size in Latin America.
At the end of December the Peruvian, Chilean and Colombian bourses had a combined market value of $718.8 billion, compared to the Mexican stock market's $453.5 billion. Brazil's bourse has a market capitalisation of about $1.5 trillion. Bourse officials say MILA will serve as a source of more and cheaper capital to companies in the fast-growing countries, all of which have aggressive free-trade agendas.
The Pacific Alliance aims to allow for the freer movement of goods, people and services, help the bloc negotiate as a group with fast-growing Asian countries, and offer an alternative platform for global firms who tend to look first to Brazil's vast but relatively more closed economy when they come to Latin America to invest. The Pacific Alliance, plans for which were announced last month, would supplant a bevy of bilateral pacts the four countries already share, represents a greater emphasis on so-called south-south integration among booming emerging markets in Latin America and Asia.
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