Chile Forum

RuneTheChookcha wrote:Taking into account, how many forum members now have access to a direct access (or simply online) trading tools, and what is the "TOTAL AllChile.net day-trading buying power".

Chile Stocks Settle At Record High On Economic Data, Earnings:

By Anthony Esposito Of DOW JONES NEWSWIRES

SANTIAGO (Dow Jones)--Chile's blue-chip Ipsa index settled at a new record high Tuesday on strong economic data and better-than-expected corporate earnings, fueling investor appetite.

After ending 0.8% higher at 4522.73, the Ipsa inched forward after settlement to a new record at 4525.01. Meanwhile, volume surged to 187.7 billion Chilean pesos ($373.5 million) after an auction of 100 million shares of shipper Compania Sud Americana de Vapores (VAPORES.SN) accounted for 36.1% of volume. The prior session's volume totaled CLP72.3 billion.

Following the auction, the shipper ended 1.0% higher at CLP652.64.

The Chilean index's gain in the eighth month of the year, some 3.7%, come as U.S. blue-chip stocks capped their worst August since 2001.

A drop in the local unemployment rate to 8.3% in the May-to-July period from 8.5% in the previous three-month period was the latest indicator that the Andean nation is quickly rebounding from last year's recession and February's devastating earthquake.

Retailers are still among the leaders on the Santiago Stock Exchange as robust domestic demand is in large part responsible for the nation's economic recovery.

Among gainers, retailer Ripley (RIPLEY.SN) surged 2.1% to CLP637.90 after it's second-quarter earnings before interest, taxes, depreciation and amortization, or Ebitda, came in above market expectations. Ripley's Ebitda of CLP28.10 billion exceeded market expectations of CLP23.98 billion, local investment bank Banchile Inversiones said in a research note.

Also, retail holding giant Cencosud (CENCOSUD.SN) rose 0.9% to CLP3,011.20, and department store Falabella (FALABELLA.SN) advanced 1.5% to CLP4,190.10.

Banks also gained as their loan business is expected to continue booming.

"The positive trend continues in loans to individuals, up 9.8% year-on-year, consumption loans increased 7.3% year on year, while mortgage loans maintained their expansion rate," said investment bank Celfin Capital.

Among banks, the nation's largest lender, Banco Santander Chile (SAN, BSANTANDE.SN) rose 2.5% to CLP41.76 and the second-largest, Banco de Chile (BCH, CHILE.SN) was up 1.5% at CLP67.80

"This earnings season, results have been positive and, in general, they have beaten market expectations," said Raul Barros, senior analyst with local brokerage BBVA Research.

In other market news, the peso ended moderately weaker against the U.S. dollar as international copper prices slumped and in spite of the improving scenario for the local labor market

The peso ended at CLP502.60 to the dollar, compared with Monday's close of CLP500.40, while trading in a range of CLP501.90 to CLP504.50.

As the Andean nation is the world's premier copper producer, the peso often takes cues from the metal's international prices. In New York trading, the December copper contract retreated 5.95 cents, or 1.7%, to $3.37 a pound as weakness in Asian equities hit expectations for demand of the industrial metal.

While the peso slipped slightly Tuesday, it gained 3.6% against the greenback during the volatile month of August as Chile's economy continues to quickly rebound while the U.S. recovery has struggled to find firm footing.

The peso has strengthened 0.8% against the dollar since the beginning of the year and 8.3% from its weakest point in 2010, at CLP548.00 at the start of June.

With exporters complaining that the peso's increasing strength is cutting into the competitiveness of their exports, the Chilean central bank recently came out to say that the peso in real terms is still in line with fundamentals.

"The noise around a possible intervention in the foreign exchange market has quieted down after the [central] bank's comments. We see the peso, over the medium term, heading towards CLP492" against the dollar, said a local currency trader.

In the bond market, yields on inflation-indexed Chilean central bank bonds, or BCUs, ended lower in a thin trading session.

The yield on five-year BCU bonds ended at 2.36%, down from 2.38% Monday, while the yield on 10-year BCUs eased to 2.58% from 2.60% the previous session.

(Peso and bond-yield closing quotes provided by Valor Futuro newswire.)

geneticoman wrote:adding more value to its exports requires a lot of capital investments.

otravers wrote:

geneticoman wrote:I've seen palta hass (core regional produce where I live) from Peru this week at Lider.

SANTIAGO (Dow Jones)--Chile's blue-chip Ipsa index closed at its fifth straight record high Monday as banks and construction companies surged on expectations that Chile's fast-paced recovery will continue to fuel profits.

The Ipsa settled 0.8% higher at 4,800.83, ending above the 4,800-point barrier for the first time. Meanwhile, market volume surged to 160.1 billion Chilean pesos ($324.5 million) after an auction of a 1.5% stake in energy holding company Compania General de Electricidad (CGE.SN). Volume totaled CLP150.5 billion the prior session.

After the auction, which raised over $41 million, CGE's shares slipped 0.6% to CLP3,399.00.

Meanwhile, Chile's quick recovery from last year's recession and February's devastating earthquake continue to provide improved conditions for banks' loans business.

Among banks, Corpbanca (BCA, CORPBANCA.SN) rose 3.4% to CLP6.72 after reporting a 30% month-on-month rise in August net profits, while BCI (BCI.SN) gained 3.0% to CLP29,275.00 on a 20% jump in August net profits.

In addition, the nation's largest lender, Banco Santander Chile (SAN, BSANTANDE.SN), surged 1.9% to CLP47.37, and the second largest, Banco de Chile (BCH, CHILE.SN), expanded 3.6% to CLP71.53.

Additionally, construction companies are seen benefiting from post-quake reconstruction efforts, which will kick into high gear during the remainder of this year.

In the sector, real-estate developer Socovesa (SOCOVESA.SN) jumped 3.5% to CLP279.42 and construction company Salfacorp (SALFACORP.SN) grew 3.1% to CLP1,396.10.

"Shares are rising and have been all this year on the great outlook for the Chilean economy and its companies. The question of when will the Ipsa stop is on everybody's mind. But right now the market is very liquid, there is money pouring in from all over the place. There's a lot of appetite for Chilean shares," said Allan Becker of local brokerage CorpBanca Corredores de Bolsa.

Also gaining, specialty fertilizer and chemical producer SQM's (SQM) more liquid B-series (SQM-B.SN) increased 2.1% to CLP23,823.00 on expectations that demand and prices for its products will continue rising and on its recent $100 million investment plan to expand production.

Also, Oro Blanco (OROBLANCO.SN), a holding company for SQM, rose 8.9% to CLP9.80, while Oro Blanco's parent company, Norte Grande (NORTEGRAN.SN), jumped 9.6% to CLP8.60, after Oro Blanco announced it was buying up the remaining shares of holding company Pampa Calichera (CALICHERAA.SN) it didn't already own.

Calichera, which also holds SQM shares and is now 95% owned by Oro Blanco, gained 0.8% to CLP991.14.

In other market news, the peso ended at a fresh 35-week high against the dollar on the greenback's broad weakness following better-than-expected U.S. economic data that fueled investor appetite for riskier assets.

Chile's currency finished stronger at CLP493.50 to the dollar, compared to Monday's close of CLP494.40, while trading in a range of CLP492.80 to CLP495.40.

The dollar dropped broadly as U.S. business inventories and retail sales rose more than expected, easing investors' worries about the economic outlook. That made investors more willing to buy riskier assets and away from the relative safety of the dollar.

As Europe is one of Chile's main trade partners, the peso often moves in the same direction as the euro does against the dollar. The euro hit a series of one-month highs against the dollar.

In the bond market, yields on inflation-indexed Chilean central bank bonds, or BCUs, ended mixed as they tracked slumping U.S. markets and banks sold bonds.

The yield on five-year BCU bonds ended higher at 2.47%, from 2.46% Monday, while the yield on 10-year BCUs ended lower at 2.85%, from 2.86% the prior session.

(Peso and bond quotes provided by Valor Futuro newswire.)


-By Anthony Esposito, Dow Jones Newswires; 56-2-715-8929; anthony.esposito@dowjones.com

Chile’s Ipsa stock index has gained 35 percent this year to record levels, outperforming other benchmark indexes in Latin America.

Chile’s peso has strengthened 2.6 percent in the same period to 494.65 per U.S. dollar.

Chile’s boom is “totally contrary to what’s going on in industrial countries,”