Chilean stocks eked out the week's third record high close on Friday, shrugging off the downward pull of US markets. The all-market IGPA index gained 0.48 percent to 14,892.61 points, while the trade weighted blue chip IPSA index rose 0.47 percent to 3,447.45 points.
The Dow Jones industrial average fell 1.37 percent on Friday amid concerns about credit markets, but the Chilean bourse turned positive in late trade, led by steel and iron ore producer CAP and shipping company Vapores. "CAP has been strong all week. Absolutely due to speculation, but there's also been a rise in international prices for steel and iron ore, so it's not all smoke," said Sergio Zapata, an analyst with the Banchile brokerage.
CAP, Chile's leading steel producer and iron ore miner, rocketed 6.03 percent to 12,400 pesos, bringing its gain for the week to nearly 21 percent amid market speculation about a potential acquisition. Sharp late session gains were also seen in shipping company Vapores, with an advance of 6.33 percent to 1,175 pesos. Analysts have cited rising tariffs, increased volumes and the introduction of fuel surcharges to explain the stock's recent rise.
Wine exporters also grabbed the spotlight as Concha y Toro stock jumped 5.43 percent to 1,360 pesos a share and Vina Santa Rita surged 14.46 percent to 190 pesos. Wine sector stocks have been rising on increased export volumes and lower grape costs. Next week, markets are likely to focus on the US Federal Reserve's meeting on Wednesday and Thursday.
"Next week is the meeting of the US Federal Reserve and even though most have dismissed the possibility of a rate hike, everyone will be listening to the statement," said Rodrigo Sarria, deputy manager of the Intervalores brokerage. Chilean inflation-adjusted 5-year central bank bond yields closed at 2.93 percent on Friday, compared with the prior session's close at 2.94 percent. The Chilean peso fell 0.34 percent to close at 526.50/527.00 per dollar compared with Thursday's close at 524.70/525.20.
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