Chile stocks declined heavily across all sectors on Friday, as global markets dipped on US credit worries. The all-market IGPA stock index fell 1.44 percent to 15,125.13 points, while the trade-weighted blue chip IPSA index slipped 1.69 percent to 3,392.94, preliminary closing figures showed.
Chilean markets were closed for the All Saints Day holiday on Thursday when global stock markets began sliding on renewed concerns about the US credit problems. "Considering that principal stock markets fell an average of 2 percent yesterday, a local correction today is pretty reasonable," said Rodrigo Martin, head of research with the Banchile brokerage. "And markets are still falling today."
Endesa Spain's giant electric utilities pulled indexes lower, with energy group Enersis sliding 2.06 percent to 190 pesos, and generator Endesa Chile down 2.43 percent to 747 pesos.
Regional retailer Falabella fell 2.09 percent to 2,885 pesos, while stock in competitor Cencosud declined 2.56 percent to 2,070 pesos. Raw materials stocks also slumped, with industrial conglomerate and wood pulp producer Copec, the bourse's most heavily capitalised company, retreating 1.81 percent, while Forestry Company CMPC fell 2.51 percent.
Next week the Chilean government will publish local economic data, which in recent months has shown a strong uptick in inflation on rising food and fuel prices, along with moderating economic growth.
"The three important events we have coming up next week will be the publication of economic activity, inflation and the trade balance. Chile's peso fell with global equities markets on Friday, weakening 0.90 percent to 497.50/497.80 per dollar, compared with its close on Wednesday at an eight-year high of 493.00/493.50 per dollar.
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