Chilean stocks fell from the previous session's two-month high in sluggish trade on Friday as investors waited for final earnings reports. The all-market IGPA index slipped 0.35 percent to 9,985.12 points, while the blue chip IPSA index fell 0.59 percent to 2,142.11, preliminary closing figures showed.
"We're still waiting for quarterly reports. I think attention is on that and on the weekend," said Rodrigo Cristi, an analyst with the Alfa brokerage. Next Tuesday is a market holiday in Chile and many people plan to take off Monday as well. No 1 supermarket chain D&S led retailer declines as its stock fell 1.89 percent to 143.49 pesos a share.
On Thursday D&S reported first half profit down 33 percent compared to last year, which was in line with market expectations. But in a conference call the firm said the financial results in July would be worse than expected.
Stock in steel and ore producer CAP fell 1.83 percent to 6,960 pesos a share in light trade. The company reported first-half net profit down 49 percent on Monday, but interest by minority shareholder Mitsubishi Steel in expanding its stake in CAP boosted share prices early in the week. Sugar producer Iansa slid 3.33 percent to 98.60 pesos a share. The company reported a sharp increase in first half net profit on Wednesday, but said revenue was down 6.3 percent.
Iansa's stock price has fluctuated between 69.40 pesos and 150 pesos a share this year as investors speculated on the firm's participation in potential biofuels projects.
"There aren't going to be many people in the market on Monday," said Cristi. "And what happens locally on Wednesday will depend on what happens in foreign markets on Tuesday." On the foreign exchange market, the Chilean peso edged up 0.15 percent to close at 542.50/543.00 per dollar compared to Thursday's close at 543.30/543.80.
Traders said the peso was favoured by rises in regional benchmark currencies, the Brazilian real and the Mexican peso, and by profit-taking on recent strong dollar purchases on the local market.