Chilean stocks rose to a new record high close on Friday as the retail sector sizzled and shares in steelmaker CAP scaled higher. The IPSA index of 40 leading shares rose 0.69 percent to 1,936.29 points, the highest close ever, while the broader IGPA index climbed 0.44 percent at 9,363.19, according to preliminary closing figures.
"It appears that investors are reinvesting the funds they will get from the public offering for Paris, which ends today and will pay out Tuesday," said Lorena Pizarro, chief of research at Alfa brokerage.
Friday was the last day of No 2 supermarket operator Cencosud's public offering to acquire shares of department store chain Almacenes Paris. The offer was part cash, part share exchange.
The deal seemed within striking distance of success after a financial-retail group that together holds more than 22 percent of Paris said this week it would accept the offer.
Cencosud added 0.25 percent to 920 pesos per share while Paris edged up 0.12 percent to 813 pesos per share.
Swept up in the retail fervour was No 1 supermarket operator D&S, which gained 2.30 percent to 178 pesos per share, and discount department store La Polar, which added 1.35 percent to 1,206 pesos per share. CAP continued an intense rally, jumping 4.20 percent to 7,528.50 pesos per share, and Invercap, which holds 29 percent of CAP, climbed 5.79 percent to 1,900 pesos per share. CAP shares have rocketed 50 percent in the last 30 days as the company has benefited from demand from China and high prices for steel.
On the foreign exchange market the peso strengthened for the third day in a row against the dollar, copying gains by the Brazilian real.
"The real has been recovering recently and that has helped lift the peso," said Eugenio Garay, a trader with Inversiones J.C. Tour.
The peso closed at 584.50/585.00, up 0.43 percent compared to Thursday's close of 587.00/587.50.