Cap Rises in Chile as Investors Snap Stock at 3-Month Low
Cap advanced 1.3 percent to 15,662 pesos at 1:19 p.m. in Santiago after earlier advancing 2.3 percent, the biggest intraday gain since Feb. 1. The stock was the second-most actively traded on the Santiago exchange today, with volume more than twice the average of the last three months.
The shares had fallen for six straight days, a cumulative plunge of 8.1 percent, as analysts including Morgan Stanley and Deutsche Bank AG cut their ore-price forecasts. In China, iron ore prices have slumped 15 percent after reaching their 2013 high on Feb. 20, according to data compiled by The Steel Index Ltd.
“The punishment to Cap’s shares may have been a bit excessive,” Felipe Ruiz, an analyst at BCI, said in a phone interview today from Santiago.
Iron-ore sales accounted for 50 percent of Cap’s revenue in 2012, according to data compiled by Bloomberg. BCI has a neutral recommendation and a target price of 18,050 pesos per Cap share by year end, Ruiz said. That is 17 percent above yesterday’s close.
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