May 31 (Bloomberg) -- Chile’s Ipsa stock index had its biggest gain this year today as fund managers bought shares to rebalance holdings in line with MSCI Inc. index-weighting changes.
The Ipsa advanced 1.2 percent to 4,188.89 at the close in Santiago, the most since Dec. 11. Retailer SACI Falabella’s shares jumped 5.1 percent and was the biggest contributor to the index’s climb. Retailer Cencosud SA rose 3.2 percent while wine exporter Vina Concha y Toro SA rallied 5.7 percent.
“We saw massive purchases by international funds,” German Guerrero, a partner at brokerage MBI Servicios Financieros, said in a phone interview today. “The portfolio rebalancing drove demand.”
MSCI on May 15 announced changes on the weightings of its equity indexes, with changes scheduled to come into effect after the close today, according to a statement on its website. Falabella’s weighting in the MSCI Latin America index increased to 0.95 percent from 0.6 percent, according to data compiled by Bloomberg.
The Ipsa is down 2.6 percent this year.
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