Chile's blue chip stocks rallied on Friday, led by banking, electric sector and commodity shares. The blue chip IPSA index rose 2.52 percent to close at 2,436.52 points, while the all market IGPA rose 2.01 percent to 11,551.69 points. Wednesday and Thursday were both market holidays.
The benchmark index has fallen sharply in recent months behind global markets, but outperformed many markets such as Brazil's Bovespa and the Standard & Poor's 500 in 2008. The IPSA closed 2008 down 22 percent. "Markets abroad are up, and here bank, commodity and retail shares are up because investors don't think things will be as bad as last year after excessive losses by some stocks," said Jorge Tolosa, an analyst at Ugarte brokerage.
Some analysts put high volume trade down to tax-related transactions, and said investors were looking to economic growth, trade and inflation data due out next week to see if they support expectations for an imminent cut in the central bank's benchmark interest rate.
Endesa Spain regional electric utility Enersis rose 0.77 percent, while generating arm Endesa Chile fell 0.27 percent. The two companies account for about 20 percent of the capitalisation on the IPSA. Power generator AES Gener, Chile's second largest electricity generator and a unit of US power company AES, rose 1.83 percent.
Shares in Santander Chile, Chile's largest bank and a unit of Spain's Santander, surged 7.27 percent, while shares in fellow bank Corpbanca gained 1.19 percent. Cencosud's shares rose 5.85 percent after the retailer announced on Wednesday that the controlling Paulmann group had subscribed nearly 80 billion pesos ($125.7 million) to a capital increase, raising its stake to 63.69 percent.
Shares in Soquimich, the world's largest lithium and iodine producer, rose 5.96 percent to 16,220 pesos each. The Santiago Stock Exchange said on its website it had rejigged the composition of its indices, with Telefonica Chile and sugar producer Iansa among a handful of shares to exit the blue chip IPSA. Global No 1 molybdenum processor Molymet was one of 19 of shares to exit the all-share IGPA.
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