Big enough for Jim O'Neill

24 January 2011 By Martin Hutchinson

Linking the stock exchanges of Colombia, Peru and Chile should create a single bourse for a $500 bln combined economy. That’s 1 pct of world GDP, giving the group the scale it needs to attract direct and portfolio investment, putting it on even Goldman Sachs’ radar screen.

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Colombia and Peru's stock exchanges have agreed to merge in order to strengthen a planned threeway integration between the two bourses and the Chilean stock exchange. Bolsa de Valores de Colombia will have 64 percent of the new company and Bolsa de Valores de Lima will hold 36 percent. The stock exchanges of Chile, Colombia and Peru had announced in November that they planned to integrate their operations to bring together the stocks of more than 560 companies, more than any other single stock market in Latin America. Combined trading volume of $300 million per day is expected.

Colombia's population is 46 million, Peru's is 29 million and Chile's is 17 million. Colombia's gross domestic product in 2009 was $234 billion, Peru's was $130 billion and Chile's was $164 billion. According to the Economist forecasters, Colombia's GDP is expected to grow at 4.4 percent in 2010 and 4.4 percent in 2011, Peru's at 8.7 percent in 2010 and 5.1 percent in 2011 and Chile's at 5.1 percent in 2010 and 6.0 percent in 2011.

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