May 12, 2011 / 3:24 PM / 8 years ago

UPDATE 2-Fujimori overtakes Humala in Peru - poll

* Daughter of former president has narrow lead now

* Stocks, currency up on prospects of rightist win (Adds market reaction)

LIMA, May 12 (Reuters) - Right-wing lawmaker Keiko Fujimori has overtaken left-wing populist Ollanta Humala in Peru’s presidential race, a poll showed on Thursday, pushing up local financial markets ahead of the June 5 run-off election.

In a nationwide survey by Datum that was published by Peru 21 newspaper, Fujimori had a narrow 2.7-point lead, getting 40.6 percent of voter support to Humala’s 37.9 percent.

The benchmark stock index .IGRA rose 1.1 percent early while the local sol currency PEN=PE bid 0.25 percent stronger, with traders citing the Datum poll.

It was the second poll this week to show Fujimori pulling ahead of Humala in the tight race.

Datum surveyed 1,210 voters between May 7 and 9 and the margin of error was 2.8 percentage points. Datum said more than a fifth of voters were undecided or plan to abstain in the vote, which makes it hard to predict the outcome.


Full campaign coverage [ID:nVOTE2PE]

Key political risks to watch in Peru [ID:nRISKPE]


Peru’s business community like Fujimori because her father, jailed former President Alberto Fujimori, opened Peru’s economy to foreign investment in the 1990s and slayed hyperinflation. But his government later collapsed in a cloud of corruption and human rights abuses stemming from his crackdown on insurgents.

Humala, a former army officer who led a short-lived revolt against Fujimori’s father in 2000, campaigns as a moderate leftist but he spooks investors with his more nationalist policy platform that outlines an interventionist agenda.

Humala says his brand of nationalism would strengthen a weak state to make sure the benefits of economic growth reach all Peruvians, not just local elites or foreign firms.

Peruvian markets plunged after Humala won the first-round vote on April 10 but have since partly recovered as investors bet on a Fujimori victory.

Three other pollsters now show a statistical tie. A poll by Ipsos Apoyo on Sunday gave Fujimori a 2 percentage point lead, her first in the race, but it was within the margin of error.

Before the latest gains, the market value of Peru’s stock index plunged by about $18 billion in less than three weeks, according to the Maximixe brokerage. The sol currency has also been volatile in one of the world’s fastest-growing economies, which boomed 9 percent last year, though a third of Peruvians still live in poverty.

Credicorp (BAP.N), Peru’s largest financial holding company, on Tuesday said it expects monthly volume of new mortgage loans, which have been an engine of economic growth, to fall in the second quarter due to uncertainty over the presidential election. (Reporting by Patricia Velez, Terry Wade and Ursula Scollo; Editing by Anthony Boadle)

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