Chile stocks soar slightly in sluggish trade

11 Sep, 2005

Chilean stocks were up slightly on Friday in lackluster trade following the central bank's announced quarter-percentage point rate hike, while the peso edged up against the dollar.
The IPSA index of 40 most liquid stocks rose 0.14 percent to 2,101.03 points while the broader IGPA index climbed 0.26 percent at 9,752.25, preliminary closing figures showed.
About $37 million in stock was traded during the session, well under the average amount of about $100 million.
Among the most heavily traded issues were retailers including diversified retailer Cencosud, up 0.74 percent to 1,085 pesos a share, and leading supermarket operator D&S rose 0.51 percent to 194 pesos a share.
Chile's central bank announced a widely expected 25 basis point increase in its benchmark interest rate to 4.0 percent at its monthly monetary policy meeting on Thursday.
It was the third consecutive rate hike by the bank.
"Although interest rates are rising, they are still low, copper prices continue to be strong, and economic growth projections have been revised up," said Felipe Laborde, research manager with Tanner Stock Brokers.
On the foreign exchange market the Chilean peso remained virtually unchanged in light trade, as it edged up 0.04 percent to close at 534.80/535.30 per dollar compared to Thrusday's close at 535.00/535.50.
"There's not much to comment about today, the market was flat and there was almost no movement at all," said Eugenio Garay, a currency broker with J.C. Tour Investments.

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