Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ipsa Advances Most This Year on Valuation: Santiago Mover

Don't Miss Out —
Follow us on:

June 13 (Bloomberg) -- Chilean stocks rose the most this year amid speculation that the six-day decline that pushed valuations to an 18-month low was excessive.

The Ipsa index increased 1.5 percent to 3,984.01 at 3:54 p.m. in Santiago. The benchmark sank 6.5 percent in the prior six sessions, driving the average price-to-earnings ratio of its 40 member stocks to 20.22, the lowest since December 2011.

Pulpmaker Empresas Copec SA, the heaviest-weighted stock on the Ipsa, rebounded after its price-to-earnings ratio reached 33.3, the lowest since September. Latam Airlines SA contributed the most to the benchmark’s advance.

“It’s a combination of a technical rebound after a violent fall in recent days and some signs of more investor confidence in the region,” German Guerrero, a partner at brokerage MBI Inversiones, said in a telephone interview from Santiago. “Proof of that is that the peso and other Latin American currencies are strengthening.”

Chile’s peso gained 0.8 percent today, the most among major Latin American currencies after the Mexican peso, which advanced 1.9 percent.

The Ipsa sank yesterday to its lowest level since October 2011 as investors withdrew funds from emerging markets on speculation that the U.S. Federal Reserve could reduce its asset-purchasing program amid signs of faster economic growth. The benchmark has fallen 15 percent from a this year’s high of 4,614.66 on Feb. 13.

Copec increased 2.3 percent today to 6,410 pesos. Latam Airlines advanced 3.4 percent to 8,605 pesos.

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.