Parque Arauco Gains in Chile as Santander Calls Top Pick
Parque Arauco SA (PARAUCO), a Chilean shopping-mall developer, headed for its biggest weekly gain in two months after Banco Santander SA named it a top pick because of growing consumer demand and an attractive valuation.
Parque Arauco’s shares have climbed 3.2 percent this week, the most since the week ended Aug. 9. Today they rose 1.2 percent to 987 pesos at 12:21 p.m. in Santiago. Chile’s benchmark IPSA index gained 0.6 percent.
Santander increased its estimate for this year’s private-consumption growth in Chile to 6.3 percent from 5.2 percent, according to an e-mailed note to clients dated today. Parque Arauco’s plan to sell 115 billion pesos ($230 million) in new shares sent the stock price tumbling by 9.1 percent from Sept. 26 to Oct. 1 and turned it into an attractive investment, according to Rodrigo Ordonez, an analyst at Santander.
“At this price, and considering that they will surely use the capital increase for growth plans, we like the stock,” he said in a phone interview from Santiago.
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