Chilean electric utilities led stock indexes higher on Friday, buoyed by lower oil prices and in anticipation of second-quarter earnings reports. The all-market IGPA rose 1.09 percent to close at 13,676.88 points, while the blue chip IPSA index advanced 1.57 percent to 2,821.85 points.
"The bourse is rising again after three pretty terrible weeks," said Rodrigo Martin, head of research with the Banchile brokerage. "I think the two main factors are lower oil prices and upcoming second-quarter earnings reports."
Indexes were led higher by Endesa Spain's regional electric utilities, with energy group Enersis surging 4.42 percent and generator Endesa Chile jumping 6.67 percent. The outlook for Chile's generators, including Endesa, has improved as this year's more abundant rainfall has filled depleted hydroelectric reservoirs.
Shares of leading brewer CCU advanced 5.09 percent, while regional diversified retailer Cencosud rose 3.85 percent. Shares in dominant air carrier LAN were up 3.91 percent, favoured by moderating oil prices. Blue chip advances led declines by 4 to 1, bringing index gains for the week to just under 2 percent.
Next week Chile's publicly traded companies will begin reporting second quarter earnings. The peso ended 1.0 percent lower at 496.50/496.80 per dollar compared with the prior session's close at 491.50/492.00, paring the peso's gain for the month to about 5.8 percent. The currency is almost flat year to date.
"It's been a pretty volatile session," a currency broker said. "I think the market is making adjustments." The central bank also continued on Friday with its daily purchase of $50 million as part of an $8 billion currency intervention begun in April after the dollar fell to around 430 per dollar. The dollar peaked briefly above 530 pesos at the end of June.