Besalco Gains in Chile to Four-Month High on ExpansionEduardo Thomson
Besalco SA, Chile’s second-largest engineering and construction company, rose to the highest in four months on speculation the company’s plan to expand in Colombia will accelerate profit growth.
Besalco advanced 2.9 percent to 905.52 pesos at the close in Santiago, its highest since Oct. 5. The stock was the biggest gainer today on Chile’s benchmark Ipsa index, which advanced 0.8 percent.
The Santiago-based builder plans to pursue engineering and construction contracts in Colombia after setting up a unit in the country with an initial capital of $100,000, according to a Feb. 26 filing. Colombia’s economy is forecast to grow 4.5 percent this year, the fastest in Latin America after Panama, Peru and Chile, according to data compiled by Bloomberg.
“It’s a good sign that they are committed to entering a new market,” Jorge Sepulveda, an analyst at brokerage Euroamerica Corredores de Bolsa SA, said in a phone interview today. “Colombia is growing strong and it has huge infrastructure requirements.”
Besalco on Jan. 11 announced that it had walked away from an agreement to acquire a 50 percent stake in local builder Conciviles SA.