Chilean stocks closed lower on Friday as a slide in raw materials issues offset gains in transport and beverage stocks. The all-market IGPA index fell 0.50 percent to 14,127.87, while the blue chip IPSA slipped 0.65 percent to 2,964.36 points.
"The main drivers on the stock market today are earnings reports locally, and the appreciation of the dollar with the fall in commodities globally," said Rodrigo Andaur, an analyst with the FIT Research brokerage.
Stocks were helped by slightly better-than-expected earnings and the outlook for lower inflation with falling oil prices. But lower commodities prices pulled raw materials stocks lower. Shares in leading fertiliser exporter SQM slumped 6.76 percent, while paper and wood pulp producer CMPC fell 2.38 percent. Steelmaker and iron ore miner CAP fell 1.89 percent after reporting first-half profit rose 8.7 percent on a sales increase of 37 percent.
Gains were led by regional retailer Cencosud, which gained 1.9 percent, while leading wine exporter Concha y Toro and brewer CCU rose 3.26 percent and 2.16 percent, respectively. Dominant air carrier LAN advanced 1.83 percent, while shipper Vapores gained 1.78 percent.
Next week investors will be attentive to final earnings reports and a central bank interest rate decision. "There are a number of big companies that still have to report," said Andaur. "We also have a monetary policy meeting. Everyone has pretty much internalised an increase of 50 basis points, but reactions will also depend on the communiqué."
The peso weakened as commodities prices fell and the dollar rallied to a five-month high. Chile's peso weakened 1.31 percent to close at 517.50/518.00 per dollar from Thursday's 510.70/511.20. The dollar rallied on world markets as commodities prices fell and on the outlook for slower global economic growth. "The dollar has been advancing on global markets, which along with lower raw materials costs, has weakened most of the region's currencies," a trader said.
Comments
Comments are closed.