nuam Collaboration

Over the last decade, the economies of the Andean Region have experienced sustained low growth. According to the World Bank, recovery from the pandemic has been slower than expected and, although progress has been made, it remains moderate and vulnerable to external shocks. Geopolitical tensions - from military conflicts to tariff disputes between powers - have added to uncertainty and reduced the appetite for investment. Added to this are more restrictive monetary policies which, while seeking to contain inflation, have slowed activity, consolidating a scenario of economic stagnation in much of Latin America.

This fragility also affects capital markets, where low liquidity limits their capacity to fulfill an essential role: channeling resources towards productive development. As stated in the study "Capital Markets and Growth: The Role of Stock Exchange Integration", prepared by Pablo García and Kevin Cowan, academics at the Business School of the Universidad Adolfo Ibáñez, a solid capital market is an engine of growth. When consolidated, it achieves economies of scale that benefit issuers, investors and society as a whole, generating a virtuous circle that increases demand for financing and investment, and expands the depth and liquidity of the system.

The history of capital markets reveals that the first stock market indexes were born as "economic thermometers" to summarize the health of a sector or an entire economy, before evolving into the global investment tools we know today. Over time, these indicators transcended their initial role: from measuring the pulse of specific industries, they evolved into global benchmarks that, in addition to reflecting the performance of entire economies, serve as investment tools for accessing entire countries and regions.

Following the same logic, Latin America has taken a decisive step to project its image in the global showcase with the MSCI nuam, an index that concentrates the most relevant companies from Chile, Colombia and Peru and seeks to show the region as a cohesive and competitive bloc.

Comprised of 56 leading companies -35 from Chile, 13 from Colombia and 8 from Peru- this index not only measures stock market performance, but also acts as an international showcase, increasing investor confidence and facilitating comparison with other markets around the world. In an environment where liquidity and visibility are essential to attract capital, tools such as MSCI nuam point the way to a more integrated, liquid and dynamic regional market, capable of channeling financing to new opportunities and strategic sectors.

In short, this index has the potential to become the thermometer of a region seeking to integrate, gain liquidity and attract capital. The difference is that today, in an interconnected world, it does not only measure the pulse of a sector or a country: it projects the image of an entire bloc, with the ambition of being perceived as a solid, reliable and competitive destination for international capital.

Kenny Gallo
Senior Business Unit Manager Market Information nuam