Chile stock indexes eked out a third straight record close on Friday as foreign and local investment funds kept buying. The all-market IGPA index advanced 0.34 percent to 13,198.26 points, while the trade-weighted blue chip IPSA index rose 0.39 percent to 2,950.90, preliminary closing figures showed.
The local stock market has hit record highs nearly every week since September and has gained nearly 7 percent year-to-date. "Some were expecting a downward adjustment, but it didn't happen," said Francisco Montaner, general manager of the Euroamerica brokerage. "Earnings reports are good and both local and foreign investment funds are buying."
Dominant regional air carrier LAN Airlines led blue chip gains with an advance of 2.83 percent to 7,075 pesos a share. LAN stock has risen nearly 21 percent year-to-date. Endesa Spain regional electric subsidiaries Enersis and Endesa Chile, among the bourse's most heavily weighted stocks, gained 1.71 percent and 1.4 percent, respectively.
Last week both companies reported sharp gains in 2006 earnings. Mobile telephone company Entel Chile rose 1.37 percent to 7,501 pesos a share. Entel has risen over 10 percent since Wednesday when Merrill Lynch boosted its recommendation on the stock to "buy" from "neutral."
"The market advance is taking place in a scenario of excess liquidity and an interest rate outlook that favours stocks," Montaner said. Electric generator Colbun led blue chip declines as it fell 2.31 percent to 105.60 pesos a share. Colbun reported 2006 profits up 73.6 percent on Monday.
On the foreign exchange market, the peso fell 0.51 percent to close at 547.50/547.80 per dollar compared with Thursday's close at 544.70/545.00. London Metal Exchange copper futures sank 6 percent to a 10-month low before cutting losses to 4.7 percent at $5,335 per tonne. Traders also said recent positive US economic data raised concerns about potential rises in US interest rates that could attract flows away from emerging markets and currencies.
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