Chilean stocks closed higher on Friday, tracking gains in US markets as financial shares cut losses. The blue chip IPSA index climbed 0.60 percent to close at 2,498.68 points, while the all-market IGPA index edged up 0.70 percent to 11,879.93 points, preliminary closing figures showed.
"The market was mainly influenced by news from the United States, the new aid for the banking sector and the inauguration of Obama next week," said Jorge Tolosa, an analyst with the Ugarte brokerage. "The Chilean bourse has also been pretty stable in recent days, even though volumes have not been very high."
Chilean stock indexes have remained stable this week despite volatility in global markets, amid projections for slower growth, rather than recession, and the outlook for lower interest rates. The IPSA ended Friday with a decline of 0.13 percent for the week.
Endesa Spain regional electric utilities helped pull indexes higher, with generator Endesa Chile gaining 1.32 percent and Enersis up 1.73 percent. Fertiliser exporter Soquimich led trade value amounts, widening its gain to 2.68 percent, while iron miner and steelmaker CAP advanced 2.79 percent. Other gains included regional retailers Falabella and Cencosud, up 1.29 percent and 1.3 percent respectively.
Declines were led by No 1 bank Santander Chile with a loss of 2.29 percent. The peso closed 0.7 percent higher at 619.20/619.70 per dollar, compared to Thursday's close at 623.50/624.00. Trade was volatile with the price for the dollar falling as low as 610.20 intraday.
"Our currency made strong early gains because of favourable conditions for regional currencies and global bourses," one trader said. A fall in US consumer prices in December that was less than expected also helped pressure the dollar lower. The peso, like other emerging currencies, usually fluctuates with investor appetite for risky assets such as stocks.