Friday, June 3, 2011

Southern Copper (SCCO) Upgraded by Barclays in Midst of Election Uncertainty

The slight decrease of the lead of Peruvian presidential candidate Keiko Fujimori over rival Ollanta Humala pressured metal stocks with exposure to Peru Wednesday, but that reversed Thursday as it appears the more business-friendly candidate will hold on to win the presidency of the country, prompting Barclays Capital to upgrade Southern Copper (NASDAQ: SCCO) from an “Underweight” rating to an “Equal Weight” rating.

Polls in the country showed on Thursday that Fujimori has 51 percent support compared with 49 percent for leftist nationalist Humala.

Humala has promised to renegotiate contracts with foreign companies if he is elected.

Southern Copper regained almost all it lost on Wednesday when it appeared Humala may gain the presidency.

A run off between the two candidates will be held on June 5.

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