Special Edition #59 (ELECTORAL IMPACT)

FILAB INSIGHTS 11/02/2020 - 11/06/2020

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“FILAB CHALLENGE” This report was elaborated under the supervision of FILAB Head and the
coordinator of the career of Management and Corporate Finance of the Faculty
of Business Sciences. Collaborated with this edition: Nicolle Cabanillas,
Mayra López, José Sanchez, Alonso Santamaria and Sebastian Vallejos.
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 1. NEWS 2. TABLES
Table 1: Matrix of returns of the World Equity Indices
Insights of the week: “Electoral impact”
After days of uncertainty, Joe Biden was elected as Index Ticker Country Points Currency 1d 5d 1m 12m
president of the United States; the stocks of this market S&P/BVL SPBLPGPT PE 17,994.83 PEN -0.23% 2.99% -0.65% -9.36%
registered weekly increases led by the technology sector S&P 500 SPX US 3,509.44 USD -0.03% 7.32% 0.93% 13.46%
(S&P 500: 7.3%, NASDAQ 100: 9.4%). The US EURO STOXX 50 SX5E EU 3,204.05 EUR -0.36% 8.31% -2.11% -13.40%
NIKKEI NKY JP 24,325.23 JPY 0.91% 4.26% 2.99% 3.99%
unemployment rate for October (6.9%) was lower than IBEX 35 IBEX ES 6,870.40 EUR -0.78% 6.48% -1.16% -26.86%
expected, US Treasury bond yields rose above 0.80% and SHANGHAI COMP SHCOMP CN 3,312.16 CNY -0.24% 2.72% 1.23% 11.74%
the dollar fell 0.3% to lows of more than two years. The
Peruvian congress approved a second round of withdrawals Data: Bloomberg (11/06/2020)
from the pension fund for a total of S / 14,400 million. Note: d=days, m=months. Return=% Price Change. Bloomberg Functions: WEI (World Equity Indices), COMP (Comparative Returns). CL: WEI <GO>, CL:
SPX <Index> COMP <GO>

TOP News: “Electoral momentum "

Table 2: Most active securities of S&P 500 (USD)
US stocks posted their best week since April. The S&P 500
Index grew 7.3% (+ $ 1.5 trillion) and the NASDAQ 100, Company Ticker Last Price($) Market Cap ($B) ROE P/E(x)
9.4%. The best performing sectors were tech, finance, Apple Inc AAPL UQ Equity 118.69 2,017.94 73.60% 36.45
healthcare, cryptocurrencies, and metals. The stocks with General Electric Co GE UN Equity 8.09 70.87 5.12% 54.31
the best returns were Alphabet (+ 8.9%), Facebook (+ 12%), Bank of America Corp BAC UN Equity 24.31 210.30 7.47% 11.84
Tesla (+ 11%), First Solar (+ 14%), Amazon (+ 9.1%) and Advanced Micro Devices Inc AMD UQ Equity 85.88 103.29 35.08% 96.32
Intel Corp INTC UQ Equity 45.39 186.01 27.24% 9.61
Apple (+ 9%), KKR (+ 12%), Tradeweb Mercados (+ 13%),
UnitedHealth (+ 14%) and Green Thumb (+ 23%).
Table 3: Most active securities of S&P/BVL (PEN)
Local: "Second round of pension withdrawals" Last Price
On Monday, a law for pension withdrawals was approved, Company Ticker Market Cap (S/ B) ROE P/E(x)
(S/)
which implies a withdrawal of S / 14.4 billion (9.5% of the Trevali Mining Corp TV PE Equity 0.12 0.09 -19.33% #N/D
funds' assets). The maximum amount to withdraw will be S Volcan Cia Minera SAA VOLCABC1 PE Equity 0.38 6.33 -26.59% #N/D
/. 4,300 for workers who did not deposit in their pensions Ferreycorp SAA FERREYC1 PE Equity 1.70 1.66 2.27% 34.13
during October and S /. 17,200 (along 3 months) for those Aenza SAA GRAMONC1 PE Equity 1.54 1.34 -32.92% #N/D
who have not deposited in their account in the last year. Alicorp SAA ALICORC1 PE Equity 6.90 5.89 11.90% 15.87
Data: Bloomberg (11/06//2020)
Note: Market Cap is total current market value in thousands of millions (B)
International: " Rise in the gold prices" Bloomberg Functions: MOST (Most Active Securities) y RV (Relative Value) CL: SPX <Index> MOST <GO> y CL: AAL UQ <Equity> RV <GO><GO>
The US unemployment rate (6.9%) lower than estimated
and the electoral panorama caused a weekly increase of
3.9% in gold, its biggest gain since July. The price of copper Table 4: Local and International Corporate Events
had an advance of 3.4% and the US dollar fell by 0.3%
Companies Nov-9 Nov-10 Nov-11 Nov-12 Nov-13
(Bloomberg dollar spot index). Data: Bloomberg (11/06/2020)
Corporación Aceros Arequipa SA (PE) D Note: ER= Earning Release, D=
Southern Copper Corp (PE) D Dividends. Bloomberg Function
Empresa Siderúrgica del Perú (PE) ER EVTS (Corporate Events), CL:
EVTS <GO>; Bloomberg Excel
InRetail Peru Corp (PE) ER
Function BDS.
Data: Bloomberg (11/06/2020) Cisco Systems Inc (US) ER
Note: Bloomberg Function TOP (TOP News), VRUS (Coronavirus Exelon Corp (US) D
Market Impact), CN (Company News), Command Line (CL): TOP
<GO>, VRUS <GO>
 3. TABLES 4. FIGURES

Table 5: Matrix of prices and returns of commodities in the futures market Figure 1: Weekly Local Ranking Returns
Returns
S&P BVL Index (PE), Ticker: SPBLPGPT Profitability
Commodity Last Price 1d 5d 1m 12m 2.99%
Average
Crude (WTI) USD/1000 BBL (CL1) 37.14 -4.25% 3.77% -8.52% -35.12%
Crude (Brent) USD/Barrel (CO1) 39.45 -3.62% 120.32% -7.93% -36.89% Firms with Best Performance
Gasoline USD/ Gall (XB1) 108.44 -2.82% 3.33% -9.87% -33.62% Aenza SAA 18.46%
Gold USD/100 ounce (GC1) 1,951.70 0.25% 3.82% 1.68% 33.41% Trevali Mining Corp 18.00%
Cia de Minas Buenaventura 7.17%
Silver USD/ounce (XAG) 25.61 0.94% 8.27% 1.82% 52.33%
Copper USD/25000 pounds (HG1) 315.40 1.41% 3.49% 2.32% 17.60% Corp Aceros Arequipa 6.19%
Southern Copper Corp 5.45%
Data: Bloomberg (11/06/2020) Firms with Worst Performance
Note: d=days, m=months. Return=% Price Change. Bloomberg Functions: GLCO (Glob- al Commodity Pricing) y Casa Grande SAA -4.40%
HCP (Precio historico con var %), LC: GLCO <GO>, CL: CL1 COMB <Comdty> <GO>; Excel Bloomberg Function Enel Generación Peru SAA -3.85%
BDH. Panoro Minerals LTD -3.49%
Ferreycorp SAA -2.86%
Table 6: Risk free rate yield curves Cia Minera Atacocha SA -1.60%
Tasa 3M 6M 1A 5A 10A
US (USD) 0.089% 0.095% 0.119% 0.362% 0.820%
Figure 2: Weekly International Ranking Returns
PERU (PEN) 0.318% 0.392% 0.558% 2.168% 3.841%
LIBOR (EUR) -0.537% -0.525% -0.472% N/A N/A Standard & Poors 500 Index (US), Ticker: SPX Profitability
UNITED KINGDOM (GBP) -0.039% -0.036% -0.031% -0.034% 0.273%
JAPAN (JPY) -0.094% -0.099% -0.147% -0.119% 0.016% Average 7.32%

Data: Bloomberg (11/06/2020) Firms with Best Performance

Note: Peru (Zero Coupon PEN), US (Treasury Actives Curve), UK (GBP UK Sovereign), JP (Sovereign Debt JPY), Biogen Inc 33.98%
EUR LIBOR (ACT/360). Bloomberg Function: GC (Graph Curves) CL: GC <GO> Arista Networks Inc 25.90%
Gartner Inc 23.21%
Zebra Technologies Corp 22.14%
Table 7: Currency Rates Matrix Cigna Corp 20.66%
T/C o FX Rate Daily Weekly Monthly Firms with Worst Performance
Hanesbrands Inc -20.04%
USDPEN 3.5928 3.6153 3.5802 Apartment Invt & Mgmt Co -18.93%
EURPEN 4.2681 4.2108 4.2351 Mosaic Co -8.70%
USDEUR 0.8422 0.8586 0.8456
Cabot Oil & Gas Corp -7.59%
GBPEUR 1.1069 1.1123 1.1027
Oneok Inc -7.28%
USDJPY 103.35 104.66 105.62
USDCAD 1.3050 1.3321 1.3121

Data: Bloomberg (11/06/2020) Data: Bloomberg (11/06/2020)

Note: Historical currency rate based on closing date 11/06/20. Note: Prices return of members with the greatest impact within 5 days.
Bloomberg Function: FXC (Currency Rates Matrix) y GP (Line Chart), CL: FXC <GO> Bloomberg Functions: MRR (Members Ranking Return), CL: SPX <Index>
CL: USDPEN REGN <Curncy> GP <GO> MRR <GO>.
 5. FIGURES 6. FIGURES
Figure 3: Elections Boost US Stock Market Figure 4: Exchange rate stabilizes during last week

US Market performance Gold spot price weekly change

30
5 3.6
25
PERCENTAGE %

20 3
Election day

PERCENTAGE %
15 1
10
-1
5
0 -3
02/1/20 03/1/20 04/1/20 05/1/20 06/1/20
-5
S&P 500 Index
Technology and consumer discretionary sectors (NYSE FANG+ Index) -7
ETFMG Alternative harvest ETF
S&P 500 Health care sector Index

Data: Bloomberg (11/06/2020)

Data: Bloomberg (11/060/2020)
Note: Bloomberg Function GP (Price graph). CL: SPX, NYFANG, S5HLTH <Index> GP; MJ US <Equity> <GO> Note: Bloomberg Function GP (Price graph). CL: XAUBGN <Curncy> GP <GO>

Figure 5: Farfetch posts a return of 282% year to date

Stock of the Week (FTCH US Equity): Farfetch Limited
Farfetch Limited is a luxury retail company that offers retail clothing, accessories and Farfetch's stock price performance
jewelry through its virtual platform, and has global coverage. Last Thursday Alibaba
Group Holding Ltd. and Richemont agreed to invest $ 1.1 billion in this luxury boutique 45
42.48
platform; each with the purchase of $ 300 million in convertible notes and $ 250 million 40
for Farfetch China. With that, Farfetch's stock reached a price of $ 42.48 at the end of 35
the week and rose 12%, the highest gain since its initial public offering in 2018. This 30
year its share price has quadrupled, from $ 11.11 to $ 42.48.
US $
25
20
11.11
15
10
5
0

Data: Bloomberg (11/06/2020)

Note: Bloomberg Function GP (Price graph). CL: FTCH <Equity> GP <GO>