Leftist congressman Roberto Sanchez has taken a slim lead over conservative Keiko Fujimori in Peru's presidential race, with official vote-counting continuing into a second day and approximately 94% of votes tallied. Sanchez currently holds 50.01% of the vote, while Fujimori has 49.99% [1]. The election, held on Sunday, has been closely watched amid a broader rightward shift in Latin America. Fujimori initially led in early results and exit polls, but Sanchez gained ground as ballots from rural regions were counted [1].
The tight race has unsettled financial markets, with U.S.-listed shares of Peruvian companies falling. Miner Buenaventura dropped 1.7%, Credicorp declined 5.9%, Intercorp Financial Services slipped 0.3%, and the iShares MSCI Peru and Global Exposure ETF fell 1.1% [1]. Alexander Robey, a portfolio manager at Allianz Global Investors, noted that markets had favored a Fujimori win in recent weeks and that the current uncertainty is likely to keep pressure on Peruvian assets. Robey stated, "We expect pressure on Peruvian markets until the vote is finalized. Specifically, if Roberto Sanchez wins, we expect investors to incorporate more risk premium – wider credit spreads, higher local bond yield and a weaker Peruvian Sol" [1].
Sanchez has pledged a significant overhaul of Peru's economic system and proposed reforms to large mining concessions, which is notable given Peru's status as the world's third-largest copper producer and a major producer of gold, silver, and zinc [1]. The ONPE electoral authority expects a full count to be completed by July [1]. An early tally by pollster Ipsos showed Sanchez leading with 50.3% to Fujimori's 49.7%, but Ipsos representatives emphasized that the result remains too close to call [1].
Both candidates have urged patience as the final votes are counted. Sanchez expressed optimism but stressed the need to wait for the complete results, while Fujimori called for calm and patience, noting that several international polling stations, which are expected to favor her, have yet to be counted [1].
CONCLUSION
Peru's presidential race remains too close to call, with Roberto Sanchez holding a narrow lead as markets react negatively to the uncertainty. Investors are bracing for continued volatility until the final results are announced, especially given Sanchez's proposed economic reforms. The outcome is expected to have significant implications for Peruvian assets and the broader market.