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Chile's Market Rally Pauses As Peso Holds Post-Election Gains
(MENAFN- The Rio Times) Chile's run toward the right in Sunday's vote is still the main story on Santiago's trading desks, but markets are taking a breather.
The peso was trading in the low 930s per dollar on Thursday morning, only slightly weaker than the post-election trough near 913, even as the global dollar index pushes back toward the 100 mark and U.S. yields firm again.
The currency's resilience is striking given the external headwinds. A stronger dollar and slightly softer copper would normally push USD/CLP noticeably higher, yet the move has been contained.
Dealers say the prospect of a more market-friendly government, with Congress shifting away from the hard left, has improved the medium-term story enough to offset the day-to-day noise.
Technically, the peso still looks in control. On the daily chart, USD/CLP remains locked in a downward trend, trading below its 50-, 100- and 200-day moving averages.
The four-hour chart shows a corrective bounce from the 920 area back toward 930–935, with momentum indicators turning up from oversold but far from signalling a new bull run for the dollar.
Unless the pair breaks decisively above the 945–950 band, traders still see the path of least resistance as a stronger peso. Equities tell a similar story of enthusiasm cooling, not reversing.
IPSA edges higher as traders rotate into exporters and blue chips
The S&P IPSA index closed around 9,874 points, up about 0.7% and still hovering just under the 10,000 barrier it briefly tested after the vote.
Investors are rotating rather than rushing for the exits, favouring exporters and financially robust blue chips over domestically exposed retailers that thrived under looser fiscal policy.
On the day, the top winners on the Santiago exchange included MSCL, pension manager CUPRUM, Latam Airline, SQM's A and B share lines, and investment vehicle IWVCL, with gains ranging from roughly 4% to more than 20%.
The sharpest losers were crypto-linked HODL, AMZNCL and METACL, homebuilder Socovesa and retailer Cencosud, with drops between 2.5% and 11%.
For now, Chilean assets are behaving like a country pricing in tougher discipline and renewed investment rather than another experiment in heavy-handed state management.
The peso was trading in the low 930s per dollar on Thursday morning, only slightly weaker than the post-election trough near 913, even as the global dollar index pushes back toward the 100 mark and U.S. yields firm again.
The currency's resilience is striking given the external headwinds. A stronger dollar and slightly softer copper would normally push USD/CLP noticeably higher, yet the move has been contained.
Dealers say the prospect of a more market-friendly government, with Congress shifting away from the hard left, has improved the medium-term story enough to offset the day-to-day noise.
Technically, the peso still looks in control. On the daily chart, USD/CLP remains locked in a downward trend, trading below its 50-, 100- and 200-day moving averages.
The four-hour chart shows a corrective bounce from the 920 area back toward 930–935, with momentum indicators turning up from oversold but far from signalling a new bull run for the dollar.
Unless the pair breaks decisively above the 945–950 band, traders still see the path of least resistance as a stronger peso. Equities tell a similar story of enthusiasm cooling, not reversing.
IPSA edges higher as traders rotate into exporters and blue chips
The S&P IPSA index closed around 9,874 points, up about 0.7% and still hovering just under the 10,000 barrier it briefly tested after the vote.
Investors are rotating rather than rushing for the exits, favouring exporters and financially robust blue chips over domestically exposed retailers that thrived under looser fiscal policy.
On the day, the top winners on the Santiago exchange included MSCL, pension manager CUPRUM, Latam Airline, SQM's A and B share lines, and investment vehicle IWVCL, with gains ranging from roughly 4% to more than 20%.
The sharpest losers were crypto-linked HODL, AMZNCL and METACL, homebuilder Socovesa and retailer Cencosud, with drops between 2.5% and 11%.
For now, Chilean assets are behaving like a country pricing in tougher discipline and renewed investment rather than another experiment in heavy-handed state management.
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