Cap Advances to Two-Week High in Chile as Iron GainsEduardo Thomson
Cap SA, Chile’s largest iron-ore producer, rose to a two-week high as prices for the steel-making ingredient rebounded from the lowest level since October.
Cap gained 2.3 percent to 12,999 pesos at the close of trading in Santiago. The benchmark Ipsa index fell 0.2 percent.
“We’ve seen a recovery in iron prices and Cap is benefiting from that,” Arturo Curtze, an analyst at Vantrust Capital, said in a phone interview from Santiago. “Cap also took a hammering in May and some investors are buying the stock betting on a short term gain.”
The price of iron at the Chinese port of Tianjin has risen 5.6 percent this week after tumbling to an eight-month low of $110 per ton on May 31, according to prices compiled by The Steel Index Ltd.
Sales of iron ore accounted for 47 percent of Cap’s revenue in the first quarter, according to data compiled by Bloomberg. Cap’s shares slumped 17 percent last month to 12,429 pesos, its lowest price since May 2009.