The overall BVL index recorded a 50% gain last year, but that wasn’t the only thing that stood out. According to these indicators, the value of listed companies, measured by market capitalization, was US$266,506 million at the end of 2025, representing a growth of 44% or US$81,826 million compared to 2024, according to nuam data.
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The growth rate of this market benchmark accelerated in 2025as its growth was more modest in the previous year, at just 4% (US$6,954 million).
Greater demand for local stocks from investors, especially private individuals and foreign nationals, exerted pressure and drove up prices.which is reflected in capitalization, which essentially calculates the number of shares outstanding multiplied by their value, mentioned management, Luis Eduardo Fallen, professor at the University of the Pacific.
Higher demand has boosted BVL’s share price. (Photo: Jorge Cerdan/GEC)
Demand
This was facilitated by an increase in trading volumes on BVL to an average daily size of USD 12 to USD 15 million.“which are important to the local stock market”as well as the entry of firms such as Auna into the stock market, which is contributing to trading volumes, he said.
“More demand for shares leads to higher prices. So more liquidity helps improve pricing, better price formation.”commented, emphasizing that the prices of securities directly affect the market capitalization.
A correlate of this increase is greater investor confidence in local companies and lower risk perception, he said. In addition, the higher capitalization of companies allows for an increase in the value of investments of mutual funds, family offices and AFPs, among others involved in the stock market, he explained.
Among the sectors that contributed the most to the capitalization, Phalen named mining companies, which are very supportive of the growth of metals and with triple digit performance of their shares; finance companies faced with lower security costs; and consumer and construction firms supported by the dynamism of domestic demand – consumption and private investment.
Attractive
For companies, positive performance in their shares and an increase in their market capitalization can help them “be more attractive” in a merger or takeover transaction with another firm, said Marco Contreras, head of research at Kallpa SAB.
“If you want to sell a share or the whole company, it can be sold for more”– he declared.
Likewise, he considered it The increase in market capitalization in BVL generally benefits all dependent workers.
“These companies (whose capitalization has increased) are included in all portfolios of pension funds, in which the majority of people from the salary are located. So when share prices go up, that’s good for all of them too.”– he declared.
Phalen noted that companies whose market valuations have improved will have more opportunities to issue shares, bonds and self-financing.
AFP are the main investors in BVL (Photo: Jorge Cerdán/GEC)
Obligations
But, at the same time, their responsibilities will increase, for example in the area of corporate governance and transparency, in addition to the fact that they will be subject to more scrutiny in the market as they will receive more coverage from investors, analysts, institutions and even public opinion, he said.
“Then they are expected to form better boards and comply. Likewise, they can potentially enter indices (such as the MSCI) as a result of their larger market capitalization.”he added.
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Perception of firm strength
Marco Contreras of Kallpa SAB explained that the increase in market capitalization is a consequence of investors seeing more strength in the companies. “They see that (the company) is generating more money, more profit, less debt, better prospects, more efficiency, etc. That’s why they demand more shares of that company and make the price (and thus the capitalization) go up.”he summarized.
“The fact that the company (also) has better financing conditions could be one of the reasons why the share price has risen, which is exactly what has happened this year as interest rates have fallen compared to the end of last year.”he added.
