Chilean stocks rose in late trade on Friday, shadowing a short-lived rebound on Wall Street led by beaten down energy shares, while the peso weakened in volatile trade versus the dollar. Chile's blue chip IPSA index rose 0.94 percent to close at 2,551.72 while the all-market IGPA index advanced 0.74 percent to 12,053.91, preliminary closing figures showed.
Wall Street stocks later closed down around 4 percent. "In Chile we're basically following US markets," said Rodrigo Andaur, an analyst with the FIT Research brokerage. The central bank published revised growth and inflation forecasts on Friday afternoon, lowering its 2009 growth projection to between 2 and 3 percent and cutting its inflation estimate to 4 percent. "The truth is I don't think it had much effect.
They were adjustments everyone expected," said Andaur. Raw materials and electric utilities led advances, with wood pulp exporter Copec up 1.76 percent and No 1 generator Endesa Chile advancing 1.93 percent. Blue chip percentage gains were led by department store chain Ripley as its shares surged 6.43 percent to close at 279 pesos a share.
"I think next week once again we're going to be keeping our eye on foreign markets," said Andaur. "The most important will be US manufacturing data on Monday and inflation on Wednesday." After a rollercoaster session, the peso ended 0.09 percent lower at 636.80/637.30 per dollar compared with Thursday's close at 636.20/636.70.
The central bank late on Thursday held its benchmark rate steady at 8.25 percent, as expected, citing an outlook for lower inflation amid falling commodities prices and slower global growth. The peso has lost over 21 percent against the dollar year-to-date, as the greenback has surged in recent months amid global recession fears compounded by a financial crisis.