Chilean stock indexes rose for a second day on Friday following better-than-expected third quarter economic growth figures. The all-market IGPA stock index rose 0.81 percent to 14,106.28 points, while the trade-weighted blue chip IPSA index gained 0.93 percent to 3,114.06.
Chile's central bank reported third quarter gross domestic product (GDP) growth of 4.1 percent on Friday, which was lower than the prior two quarters, but above market expectations. "Attention had been focused on international issues and local data was being ignored, but this positive figure is providing an extra boost," said Paulina Barahona, an analyst with the tanner brokerage. "We seem to be confirming yesterday's rise."
Chilean stock indexes rose on Thursday after a five-day slump, as global markets slid on concerns about US credit problems and flagging growth, while oil neared $100/barrel. Dominant air carrier LAN led blue chip gains as its shares jumped 3.84 percent to 7,100 pesos.
Goldman Sachs upped its recommendation of LAN to "neutral" from "sell" on Friday after a 16 percent decline in its share price since October. LAN and other transportation stocks were particularly hard hit by this month's surge in oil prices.
Retail gains were led by Ripley and Falabella with advances of 1.67 percent and 2.27 percent. Gains in the forestry sector included panel manufacturer Masisa, up 2.73 percent to 105.80 pesos a share and wood pulp producer Copec, with an advance of 1.63 percent to 8,185 pesos.
Other rising issues included lithium and iodine producer and leading brewer CCU with advances of 2.48 percent and 2.36 percent. Chilean stocks had fallen nearly 9 percent this month amid global volatility, and local analysts and traders are hoping that stock prices have finally bottomed out. "Things seem to have calmed down a bit, but I think that Monday will give us a clearer indication," Barahona said.
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