Chile stocks edge up to record high

03 Dec, 2006

Chilean stocks edged up in heavy trade to a third consecutive record high on Friday, shrugging off losses in other regional markets. The all-market IGPA index edged up 0.06 percent to 11,712.15 points, while the blue chip IPSA index gained 0.08 percent to 2,561.70, preliminary closing figures showed.
"The market has been very strong, with strong volumes from foreign investors and with valuations at new highs," said Marcelo Ogaz, an analyst with brokerage BICE in Santiago.
Ogaz said volumes also remained high on the local side as investors continued to switch pension fund holdings to stock-heavy funds in response to the sustained market rally and low interest rates. Blue chip gains were led by retailer Cencosud, with an advance of 1.45 percent to 1,610 pesos a share, while steel and ore producer CAP advanced 3.28 percent to 7,090 pesos a share.
Offsetting gains were heavily weighted electric utilities Enersis, with a loss of 0.62 percent to 159.49 pesos a share and No 1 generator Endesa Chile, down 0.83 percent to 606.90 pesos a share. "Many stocks have been approaching or surpassing target prices for months. We've seen an avalanche of reports with new target prices in all sectors. We'll have to see how far it goes," Ogaz said. The Dow Jones industrial average closed 0.23 percent lower while the region's benchmark, the Brazilian Bovespa fell 1.44 percent.

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