Chile stocks jumped to new year highs on Friday, with strong demand for copper cables, wood pulp, shipping, power and steel stocks expected to show good third-quarter financial results, while the peso currency hit its strongest level since mid-April.
The IPSA index of 40 leading stocks gained 1.41 percent to 1,731.16 points, a historic high in peso terms, while the broader IGPA index also surged 1.55 percent to 8,695.82, according to preliminary closing figures.
Friday's value leader was copper cable manufacturer Madeco, up 3.08 percent to 57.20 pesos per share on as copper prices on the New York Mercantile Exchange hovered around 9-year highs.
Shipping company Sudamericana de Vapores leaped 12.35 percent to 1,270.00 pesos per share in heavy volume as the market continued to react to news that it will sell off its stake in another shipping company for close to $150 million.
Vapores, one of South America's biggest shipping companies, is also expected to report a strong third quarter due to Chile's export boom, which has kept ports busy. A Reuters poll of six economists gave an average forecast that Chile's economic activity will grow 6.2 percent in August compared with August last year, the second-highest monthly growth rate this year. Strong growth in August is seen boosting corporate results in many sectors.
Steelmaker Cap added 2.12 percent to 4,800.00 pesos per share. Market bellwether energy group Enersis moved up 1.14 percent to 88.90 pesos per share.
On the foreign exchange market the peso currency strengthened 1.07 percent to close at a 5-1/2-month high on slack demand for dollars, bouncing back from two losing sessions when banks and companies bought up dollars to drive down the peso at the end of the third quarter.
The peso closed at 604.20/604.70 per US dollar, compared with 610.70/611.20 on Thursday.
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