Chilean stocks traded higher for a second day on Friday after US jobs data buoyed investor sentiment. The all-market IGPA index, advanced 0.34 percent to 13,190 points, while the trade-weighted blue chip IPSA index advanced 0.36 percent to 2,880.
"The data had its effect; there was an immediate upward change in trend," said Roberto Guzman, investment manager with brokerage Euroamerica. "The market heated right up." Retailers continued to lead trade, with No 1 supermarket chain D&S up 3.35 percent to 180 pesos a share, while department store chain Ripley advanced 1.32 percent to 765 pesos a share.
Dominant air carrier LAN rose 1.5 percent to 7,395 in heavy trade, bringing its year-to-date gain to 26 percent. This week LAN shares fell after it announced a $300 million capital increase to expand its fleet. Next week markets well be paying attention to a government announcement on Tuesday on measures to boost economic growth and the central bank's monetary policy meeting on Thursday.
Some analysts say that with current tame inflation and moderating growth there is room for a further cut in the overnight lending rate, which now stands at 5.0 percent. "There is a lot of speculation. The market is divided." Guzman said. The Chilean peso slipped 0.15 percent to close at 538.30/538.60 per dollar compared with Thursday's close at 537.50/538.00.
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