UPDATE 2-Peru stocks slump nearly 3 pct after leftist win

* Currency weakens slightly, debt insurance cost rises

* Shares in Peruvian mining stocks fall in New York
(Updates prices, adds commentary)

LIMA, April 11 (Reuters) -Peru’s benchmark stock index
(.IGRA: Quote, Profile, Research) fell nearly 3 percent on Monday after left-wing
nationalist Ollanta Humala won the first round of Peru’s
presidential election, though the currency only weakened

With 72.4 percent of Sunday’s ballots counted, officials
said Humala had 29.3 percent of the vote and looks set to face
right-wing lawmaker Keiko Fujimori in a June 5 run-off.

Fujimori had 22.9 percent, ahead of former Wall Street
banker Pedro Pablo Kuczynski at 21.1 percent. [ID:nN11267668]

The benchmark Lima stock market IGRA (.IGRA: Quote, Profile, Research) index fell
2.86 percent. Mining stocks account for more than half of the
weighting of the IGRA index. Humala has pledged to hike mining
taxes, while Fujimori has said she would tax windfall profits.

In New York, American Depositary Receipts of miners
Buenaventura (BVN.N: Quote, Profile, Research) and Southern Copper (SCCO.N: Quote, Profile, Research) were down
2.8 percent and 2.3 percent respectively.

The cost of annually insuring Peruvian debt (PEGV5YUSAC=: Quote, Profile, Research)
over five years rose 5 basis points to 135 bps, according to

Commenting on the modest rise, Markit Credit Research
Director Otis Casey said: “It seems that political observers
there are still expecting the center-right candidate, Fujimori,
to win a run-off over Humala with the other vote getters
rallying around Fujimori but there is some undercurrent of
doubt now.”

The sol (PEN=PE: Quote, Profile, Research) weakened 0.1 percent to traded at 2.8 per

Looking at the run-up to the the runoff election, Nomura
Economist Benito Berber wrote in a report that: “The market
will get jittery if over the next two months poll numbers for
Humala get significantly ahead over Fujimori.”
(Reporting by Ursula Scollo and Caroline Stauffer. Editing by
W Simon )

UPDATE 2-Peru stocks slump nearly 3 pct after leftist win