Chile stocks dipped slightly on Friday as two big retailers lost ground after denying they are considering a merger, and as the entire market slowed down at the height of the summer vacation season. The IPSA index of the 40 most-liquid stocks on the Santiago Stock Exchange slipped 0.15 percent to 1,825.34 points, but accumulated a 0.66 percent rise during the week. The broader IGPA index edged down just 0.05 percent to 8,939.11 points, according to preliminary closing figures.
"Historically our bourse shows weak performance on Fridays during the summertime, and this was no exception," said Roberto Guzman, investment manager at Euroamerica brokerage. Santiago empties out in mid-February as Chileans swarm to the beach.
Among the session's top percentage losers were department store operator Falabella, off 0.76 percent to 1,310.00 pesos per share, and leading supermarket chain D&S, down 1.18 percent to 167.99 pesos per share, a day after both companies denied local news reports that they were in merger discussions.
Guzman said he expected buying to pick up next week as institutional investors get back into the act after being absent on Friday, and on anticipation of more fourth-quarter earnings reports.
On the foreign exchange market the peso currency strengthened slightly, in a third consecutive day of gains, on demand for Chile's currency inspired by the central bank's surprise decision on Thursday night to tighten monetary policy for a second month in a row.
Higher rates make Chilean bonds relatively more attractive.
The peso advanced 0.18 percent to 572.80/573.30 per US dollar, compared with 573.80/574.30 per dollar at Thursday's close. Over the full week the peso gained 0.57 percent. Traders said they expect the peso to continue strengthening next week due to the outlook for robust economic growth, though if the dollar rallies against the euro that could take some of the steam out of Chile's currency.
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