Chilean stocks closed lower in light trade on Thursday, as regional markets slipped eyeing US earnings and economic data. The blue chip IPSA index fell 0.51 percent to 2,731.01 points, while the all-market IGPA index slipped 0.37 percent to 12,767.12.
While the local market correctly bet the country's central bank would hold its benchmark rate steady, it eyed volatility in US markets amid weak data and mixed earnings reports. Chile's central bank held its target overnight lending rate at 6.25 percent on Thursday, in a widely expected decision. "The market seems nervous. A lot of data are moving the market and earnings results are mixed," said Marcelo Ogaz, an analyst with the BICE brokerage. "At the end of the day we're too correlated (with US markets)."
Weak January retail sales confirmed concerns about the cooling US economy on Thursday, while Morgan Stanley saw a 71 percent chance of a US recession in the next 12 months. Declines on the Santiago exchange were led by wood pulp and paper producer CMPC, as its shares slumped 3.16 percent to 18,400 pesos a share.
Soquimich, the world's leading iodine and lithium producer fell 3.13 percent to 7,750 pesos a share. The company's stock has fallen 15 percent this year after gaining 25 percent in 2007.
Endesa regional energy group Enersis slipped 0.75 percent while diversified retailer Falabella led losses in its sector with a retreat of 1.22 percent. Dominant air carrier LAN helped offset blue chip losses with an advance of 2.01 percent, while iron ore miner CAP gained 1.56 percent.