Chile Stocks market Down september 5 2011

Indonesia stock info - Chile Stocks market Down september 5 2011 ; -Chile's blue-chip Ipsa ended 3.0% lower Monday, as global growth worries fueled a flight to safety and investors sold off financially troubled shipper Compania Sud Americana de Vapores SA (VAPORES.SN).

The Ipsa fell to 4121.77 points, while market volume ended at a very thin 36.79 billion Chilean pesos ($79.5 million), compared with a closing volume of CLP67.80 billion the prior session. Volume was light as U.S. markets, which are a bellwether for the Ipsa as several of the local index's shares trade in New York, were closed for the Labor Day holiday.

Local shares tracked plummeting European stock markets, as investors worried the U.S. may be on track for another recession following dismal jobs data on Friday.

Additionally, the Ipsa fell as investors digested Chile's monthly economic activity index, or Imacec, which grew a lower-than-expected 4.0% on the year in July. Market consensus had expected a 4.1% gain.

Meanwhile, shipper Vapores dropped 15.9% to CLP185.00 after it asked shareholders to approve a $1.2 billion capital increase, on top of the $500 million it already recently raised. Vapores, after markets closed Friday, also reported a first-half net loss of $527.1 million and said more losses would be likely during the remainder of the year.

"Investors are wondering when the company will turn a profit, if the second capital increase will be authorized and if Vapores can avoid bankruptcy," said Franco Contreras at brokerage Tanner Corredores de Bolsa.

Also declining, flagship carrier LAN Airlines (LFL, LAN.SN) lost 3.4% to CLP13,000.00; retail holding giant Cencosud (CENCOSUD.SN) slipped 3.2% to CLP2,835.00; and integrated steel and iron ore producer Cap (CAP.SN) decreased 3.4% to CLP18,750.00.

In other market news, the peso ended weaker against the dollar, as international copper prices slumped and the euro fell versus the U.S. currency as investors sought safer bets.

The peso ended at CLP462.60 to the dollar, versus CLP459.85 Friday, while trading in a range of CLP461.90 to CLP463.50.

Chile's central bank, as part of its ongoing $12 billion currency-intervention program, purchased $50 million Monday at an average rate of CLP462.04 to the dollar. It has accumulated $8.70 billion so far this year.

In the fixed-income market, yields on inflation-indexed Chilean central-bank bonds, or BCUs, ended lower, as investors worried about the health of the global economy.

The yield on five-year BCU bonds ended at 2.15%, from 2.24% on Friday, while the yield on 10-year BCUs closed at 2.21%, from 2.31% the previous session.


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