Chile's benchmark share index tumbled in volatile trade on Friday, dragged lower by euro zone sovereign debt worries, while the peso rose 1 percent on better-than-expected December growth data. Chile's IPSA blue chip share index shed 2.06 percent in volatile trade to end at 3,696.24 points, further retreating since setting a record closing high of 3,853.58 set on Tuesday.
The all-market IGPA closed 1.75 percent lower at 17,191.53. The IPSA had sunk 4 percent in back-to-back sessions. The blue chip index is still trading about 3 percent higher year-to-date and is seen ending 2010 around 15 percent higher. European policymakers on Friday scrambled to reassure markets about the stability of the 16-nation currency bloc as investors shed euro-denominated assets for a second straight day amid fears about debt-laden member states Greece and Portugal.
Chile's leading electricity generator Endesa tumbled 3.06 percent to 881.99 pesos, while Chile-based regional energy group Enersis, slid 4.18 percent to 226 pesos per share. Shares of Chile forestry group CMPC fell 2.66 percent to 21,601 pesos, while regional airline LAN dipped 0.85 percent to end at 8,705 pesos.
Chilean President-elect Sebastian Pinera on Friday approved the sale of his 26.3-percent stake in the airline, held by his holding companies Axxion and Santa Cecilia. Pinera's stake is worth an estimated $1.47 billion at current valuations. Earlier in the day, the peso closed 1 percent higher at 538.00/538.50 per US dollar, compared with Thursday's close of 543.50/544.00. The currency opened the session 1 percent lower, flirting with 15-week lows, before recovering.
The peso sank in recent sessions amid uncertainty following changes to pension fund hedging norms and on the looming end of a central bank liquidity measure. The currency is now down around 6 percent against the dollar in the year-to-date. Chile's economic activity index, the IMACEC, rose a bigger-than-expected 3.9 percent in December from a year earlier, the central bank said on Friday, signalling an end to the country's first recession in a decade.
Comments
Comments are closed.