Chilean stocks finish flat

20 Aug, 2006

Chilean stocks ended flat on Friday as investors took some profits.The all-market IGPA index edged up 0.04 percent to 10,069.55 points, while the blue chip IPSA index slipped 0.02 percent to 2,168.31, preliminary closing figures showed.
"Today's session was the result of the consecutive rises we had earlier in the week: what we have now is typical profit taking," said Rodrigo Sarria, an analyst with the Intervalores brokerage.
Earlier in the week global markets rallied as economic data confirmed views that the US economy was slowing and that the Federal Reserve would be less likely to raise interest rates. Diversified retailer Cencosud slipped 0.67 percent to 1,330 pesos a share. Cencosud, the most heavily weighted stock on the trade-volume-based blue chip IPSA index, gave back some of the gains it made following its strong earnings report last week.
No 1 department store chain Falabella fell 1.18 percent to 1,590 pesos a share. Wine exporter Concha y Toro led blue chip percentage gains as its stock rose 2.92 percent to 775 pesos a share. The company reported first-half profit down 44 percent as the strong peso squeezed export margins. Dominant air carrier LAN Airlines led trade values as its shares advanced 0.83 percent to 3,640 pesos.
"I think the general upward trend will continue next week, because the of the news we've had this week, including the possibility the Fed will maintain interest rates, the Mideast cease-fire and the fall in oil prices," Sarria said.
On the foreign exchange market, the Chilean peso retreated 0.30 percent to 532.30/532.80 per dollar compared to Thursday's close at 530.70/531.20.
"The dollar's strong depreciation earlier this week caused an increased demand for the currency, which resulted in what's called a technical rebound," a broker said.

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