Chilean stocks rose for a sixth consecutive session on Friday while the peso retreated against the US dollar, both responding to the central bank's decision on Thursday to hold interest rates steady.
The IPSA index of 40 most-liquid stocks climbed 0.20 percent to 2,166.55 points while the all-market IGPA index inched up 0.08 percent to 9,917.77, preliminary closing figures showed.
"Clearly the central bank's decision to maintain the rate gave incentive to stay in the market," said Antonio Fuenzalida, a trader with the Euroamerica brokerage.
At its monthly monetary policy meeting on Thursday the central bank decided to hold the benchmark annual interest rate at 4.75 percent.
Dominant air carrier LAN Airlines led the blue chips as its stock climbed 2.51 percent to 4,121 pesos a share. Analysts said LAN was boosted by its announcement on Friday that it would change accounting policies regarding fleet maintenance, a move it said would generate a $40.3 million nonoperating pretax benefit in the first quarter of 2006.
Locally owned telecommunications company Entel gained 1.84 percent to 5,600.
"Entel's 2005 earnings report was spectacular, and that could be helping some," said Fuenzalida. "But there have also been new rumours about alliances or sales."
Retailer La Polar led the retail sector with a rise of 2.52 percent to 1,630.00 pesos a share.
"Today Polar provided financial results to its investors and kind of confirmed plans for expansion," said Rodrigo Cristi, an analyst with the Alfa brokerage. "And in the past, when La Polar talked about expansion it has always exceeded expectations."
On the foreign exchange market the Chilean peso retreated 0.57 percent to 528.00/528.50 per dollar compared to Thursday's close at 525.00/525.50.
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