Chile stocks made solid advances on Friday, led by forestry shares amid speculative buying a week after a mega merger in the retail sector. The trade-weighted blue chip IPSA index rose 1.79 percent to 3,210.31 points while the all-market IGPA index advanced 1.49 percent to 14,092.32 points.
"Copec is up because of the strong international outlook and due to high prices for wood pulp," said Pamela Auszenker, an analyst with the BCI brokerage. Auszenker said market activity was also helped by investment bank recommendations and by speculation of further merger activity following last week's deal between leading retailer Falabella and No 1 supermarket chain D&S.
Blue chip gains were led by industrial conglomerate Copec, one of the world's leading exporters of wood pulp and the bourse's most heavily capitalised company, as it surged 4.01 percent to 7,599 pesos a share. Paper and wood pulp producer CMPC gained 2.96 percent to 17,400 pesos a share.
Government data released this week showed Chile's wood pulp exports in the first four months of the year more than doubled on booming Asian demand. Both Copec and CMPC have recently brought new plants on line to supply the increased demand.
Other rising issues included Telecommunications company Entel Chile with a surge of 5.41 percent to 8,830.10 pesos a share after a Citigroup raised its target price from 8,200 to 11,000 pesos per share.
Cencosud led the retail sector with a gain of 2.39 percent to 2,099 pesos a share, while Endesa Spain regional energy group Enersis rose 1.91 percent to 191 pesos.
Next week the local market will be following data on industrial production and employment. "Lower unemployment is having a positive effect on consumer spending and if figures are good retail stocks could take the lead," Auszenker said. The Chilean peso rose 0.52 percent to close at 522.60/522.90 per dollar compared with Thursday's close at 525.30/525.60.
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