Besalco Slumps for 9th Day in Chile on Lower Net Income
Besalco SA (BESALCO), Chile’s largest builder by market value, declined for a ninth straight day in its longest losing streak in two years after reporting last week profits that trailed analysts estimates.
The shares fell 7.3 percent to 612 pesos at the close in Santiago, extending its loss since Oct. 22 to 21 percent. The IPSA stock index fell 0.5 percent.
Besalco reported Oct. 30 in a filing that its profit in the third quarter fell 63 percent from a year earlier to 1.51 billion pesos ($2.9 million). Euroamerica Corredores de Bolsa SA had forecast a decline of 12 percent.
“The market expected lower profits, but the final numbers were a lot lower than forecast and that keeps pressuring the shares,” Jorge Sepulveda, an analyst at Euroamerica, said today in a phone interview.
Luis Alfredo Ramos, an analyst at Santiago-based brokerage Larrain Vial SA Corredora de Bolsa, cut today the firm’s recommendation for Besalco to sell from buy and set a price target of 700 pesos, according to data compiled by Bloomberg.
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