Chilean stocks closed up for a third day in vigorous trading on Friday, as the outlook for global oil prices fell, copper prices rose and signals strengthened for a potential interest rate cut in the United States.
The trade-weighted blue chip IPSA index rose 0.91 percent to 3,204.97 points, while the all-market IGPA stock index advanced 0.78 percent to 14,519.00 points, preliminary closing figures showed. On Wednesday Chilean markets had their biggest one-day rise in seven years as hopes strengthened that the US Federal Reserve could cut interest rates at a December 11 meeting.
A week ahead of a meeting of the oil producer group Opec, market watchers were also optimistic it would agree to boost output and relax soaring oil prices. Chile imports almost all of its oil, so a drop in prices was welcomed by many of its most energy-intensive industries. Investors also applauded rising prices for copper, Chile's chief export.
"Stock is up on oil, copper and the idea that the United States is going to lower rates," said Rodrigo Sarria, deputy manager of the Intervalores brokerage in Santiago. Dominant air carrier LAN, a blue chip favourite, rose 2.06 percent to 7,450 pesos global oil prices slipped below $89 a barrel. Shares in Endesa Spain's giant electric utilities, heavily weighted on the local bourse, also gave indexes a nudge higher, with energy group Enersis rising 0.61 percent.
Retailers also showed healthy rises, with stock in Chile's leading regional retailer Falabella rising 1.36 percent, while smaller competitor La Polar rose 2.0 percent. The peso strengthened to 505.70/506.00 per dollar compared with Thursday's close at 508.10/508.40.