Corpbanca Advances After MSCI Increases Index Weightings

Corpbanca (CORPBANC), Chile’s sixth-largest lender by assets, rose to the highest price of the last three weeks after its weighting increased in the MSCI Chile and Latin America indexes.

Corpbanca added 1.7 percent in Santiago trading to 6.901 pesos at 4:18 p.m. New York time, the highest level since July 29. About 5.3 billion pesos ($11.4 million) of shares changed hands, more than five times its average of the past three months.

“Investors that use the indexes as benchmarks are buying the stock,” German Guerrero, a partner at Santiago-based brokerage firm MBI Corredores de Bolsa SA, said today in an e- mailed response to questions.

The weight for Corpbanca in the MSCI Chile (MXCL) index will rise to 2.2 percent beginning Sept. 1 from 1.7 percent, Reema Dutt, an official at Abernathy Macgregor, MSCI’s external press relations office, said in an e-mailed response to questions.

In the MSCI Latin America index, the bank’s weighting will rise to 0.16 percent, according to an e-mailed note from Banco Santander SA dated today.

The changes will feed demand for Corpbanca shares, Banco Santander analyst Stefano Rizzi wrote in a note to clients.

Other stocks with “buying pressure” due to higher weighting in the index will be Corporacion Financiera Colombiana SA, a Colombian financial group, Grupo Televisa SA, the world’s largest Spanish-language broadcaster, America Movil SAB, the Mexican wireless telecommunications company, and MMX Mineracao e Metalicos SA (MMXM3), the iron-ore producer controlled by Brazilian billionaire Eike Batista, Rizzi wrote.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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