Chile stocks close flat

04 Jul, 2004

Chilean stocks closed flat on Friday in lackluster trade ahead of a US holiday, due to new concerns that the country's strong economic upturn was failing to create more jobs, analysts said.
The IPSA blue-chip index inched 0.07 percent higher to 1,481.36 points while the broader IGPA index climbed 0.26 percent to 7,539.71 points, according to preliminary closing figures. Turnover was average at $17.3 million.
"The stock market was affected in part by the US holiday on Monday. Also, the data on economic expectations, spending and unemployment published this week have provoked a certain amount of apathy," said Cristian Moreno, head of research at Santander Investment Chile.
"I think the market is waiting for more economic data to improve its forecasts on the speed of growth," he added. Chile's government said on Wednesday that unemployment rose to 9.4 percent in March-May, higher than expected amid strong economic growth, stirring fears of a jobless recovery.
Dominant telephone company Telefonica CTC Chile was the value leader, up 1.04 percent to 1,940 pesos.
But energy group Enersis dragged on the blue-chip IPSA, losing 1.07 percent to 73.70 pesos.
In the foreign exchange market, Chile's peso currency strengthened against the US dollar for the third straight session on softer than expected US jobs data.
The currency closed at 630.00/635.50 per dollar, 0.63 percent higher compared with Thursday's close of 634.00/634.50.
The peso has depreciated 5.95 percent so far this year after appreciating 21 percent in 2003.

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