E.CL Gains on Prospect Miners to Buy More Power: Santiago Mover
E.CL SA (ECL), northern Chile’s largest power generator, rose to the highest in almost two months after stock researcher Banchile Citi rated the shares buy and said the company may benefit from growth in the mining industry.
E.CL advanced 0.7 percent to 1,133 pesos at 2:15 p.m. in Santiago. Earlier the Santiago-based company’s shares reached 1,140 pesos, the highest on a closing basis since Nov. 20.
Mining projects under development in northern Chile require an additional 2,060 megawatts of net generating capacity, Banchile Citi said today in its initial report on the stock. Total electricity demand in the region may more than double from 2011 levels to 3,975 megawatts in 2020.
Companies that can develop major power plants in the region should be well positioned to sign economically attractive contracts with mining companies, analysts Andrew McCarthy, Marcelo Britto, Alexandre Kogake and Kaique Vasconcellos said in the note.
Banchile Citi, the joint research department of Santiago- based Banco de Chile and New York-based Citigroup Inc., projected that E.CL shares may rise to 1,320 pesos by the end of 2013. That’s 17 percent higher than the current price.
E.CL was the third-worst performer last year among members of Chile’s benchmark Ipsa index, with a 19 percent fall.
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