Equity Research Special Report rd March 23 , 2020 Andean Equities Report A stock guide on COVID-19 crisis Any feeling of safety has faded away. A simple virus that started CREDICORP CAPITAL RESEARCH spreading from a distant place in China has changed our reality. Uncertainty comes not only from when we will have the vaccine or the Carolina Ratto extension of the quarantine but also from how this crisis could eventually +(562) 2446 1768 change human habits, re-shaping the story of many industries (tourism,
[email protected] retailers, malls, airlines). Regarding the labor force, many answers are unknow. How long will it be possible to maintain current payroll? How will Tomás Sanhueza companies manage salary reductions to avoid layoffs? Home office is +(562) 2446 1751 here to stay as it allows lighter cost structures. What is the effect on
[email protected] consumption behavior? The impact on the market and economic activity is tremendous. Sebastián Gallego, CFA +(571) 3394400 ext. 1594 Governments and central banks are doing their part. In Chile, President
[email protected] Piñera announced an unprecedent fiscal package for 4.7% of GDP to protect the jobs and income of the most vulnerable population as well as the SMEs, for Daniel Córdova them to be able to ‘survive’ at times of crisis. The Board of the Central Bank of +(511) 416 3333 Ext. 33052 Chile (BCCh) cut its reference rate by 75bps to 1.0%, reaching its lowest level
[email protected] since 2010. In Colombia, the government has also announced a fiscal plan amounting to 1.5% of GDP coming entirely from stabilization funds as well as the postponement of disbursements to FONPET (pension fund and other regional entities).