Concha y Toro Advances as Bulk-Wine Prices Slide: Santiago Mover
Vina Concha y Toro SA, Chile’s largest wine exporter, rose the most since August after bulk-wine prices fell to a three-year low, driving down the company’s costs.
Concha y Toro advanced 3.2 percent to 937.23 pesos today in Santiago, the biggest increase on a closing basis since Aug. 3. Volume was almost five times the daily average of the past three months. The Ipsa benchmark index fell 0.7 percent.
“The lower costs will take some time to be reflected in their profits, but there are investors that are buying in advance,” Isabel Darrigrandi, an analyst at Grupo BTG Pactual, said in a telephone interview from Santiago.
Prices for bulk wine, the source for 65 percent of Concha y Toro’s production, retreated in southern Chile’s Maule region last month to 12,000 pesos per arroba, a measure of volume that represents about 40 liters. The price is down 32 percent from a year before and is the lowest since February 2010, according to data from Chile’s agricultural statistics agency Odepa.
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