Chilean stocks fell on Friday as investors anticipated a rate hike at the central bank's monetary policy meeting next week. The IPSA blue chip index fell 0.81 percent to 2,105.78 points while the all-market IGPA index slipped 0.49 percent to 9,855.13, preliminary closing figures showed.
"We're coming up on a rate decision on Thursday, which is clearly going to rise at least a quarter percentage point, and people are selling to get a little more liquid." said Antonio Fuenzalida, a trader with the Euroamerica brokerage.
A Reuters poll on Friday showed the Chilean market widely expects the central bank to hike its target overnight lending rate 25 basis points to 5.25 percent, given strong economic growth in May, which expanded 6.1 percent compared with the same month last year.
The most actively traded stock was No 2 electric generator Colbun, whose shares slipped 0.35 percent to 83.25 pesos a share. Stock in leading wood pulp manufacturer Copec fell 1.96 percent to 4,740 pesos a share, while department store and consumer banking chain Falabella dipped 1.23 percent to 1,610 pesos a share. "Investors are also waiting for foreign stock markets to react positively," Fuenzalida said.
New York and Brazilian indices fell more than 1 percent on Friday. Next week Chilean companies will begin reporting second-quarter financial results. On the foreign exchange market the peso currency slipped 0.11 percent to 538.80/539.30 per dollar compared to Thursday's close at 538.20/538.70. Traders said the peso fell earlier in the session when banks closed dollar positions, but gained in later trade after Moody's Investor Service upgraded the foreign currency ratings of Chilean banks.
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