I Love Chile News

News

Chile Market Summary – September 7, 2012

Chile Market Summary – September 7, 2012
September 08
07:33 2012
chile news, noticias chile

Santiago Stock Exchange. Photo credit: Isaías Campbell

SANTIAGO — It was a good start for the month of September for global financial markets, where September traditionally has been negative, except in Chile. The IPSA, the Santiago Stock Exchange Index, was flat for the week, second week in a row, whereas the US’s Standard & Poor’s 500 was up about 2 percent hitting four-year highs and Germany’s DAX Index was up about 3 percent hitting a new high for the year.

On Thursday global markets spiked on news that Mario Draghi, head of the European Central Bank (ECB), was moving forward with a plan to purchase bonds from financially troubled governments such as Spain and Italy. The Dow Jones Industrial Average jumped 200 plus points on the news, about 1.5 percent, whereas the IPSA had a muted response, up about 10 points or about 0.2 percent.

What did really move this week Chilean related was copper, up almost 6 percent. Copper had closed last week Friday at $3.45 per pound and reached $3.65 in the week, with a $0.13 per pound increase just today. China’s announcement of a $185 billion infrastructure stimulus project drove today’s big move.

We saw the Peso gain strength, up approximately 1 percent for the week closing at about 475 to the US dollar. Not good news for Chilean exporters but an indication on how investors feel about the Chile’s financial stability.

Also the Aberdeen Chile Fund (CH, NYSE), a closed-end fund that invests in Chilean equities, jumped 4 percent for the week. A big contributor to the upside move was Banco Santander’s shares gaining 11.6 percent for the week. Santander makes up about 10 percent of CH’s holdings.

chile news, noticias chile

Randy Havre

Randy has a wealth of experience in the financial industry. In 1987, he established his own Investment Advisory Firm, managing money for the State of Hawaii’s pension fund. He wrote a weekly stock column in the Pacific Business News for 21 years, taught Portfolio Management and Investment Strategies at the University of Hawaii for five years and is on KHON’s Morning News as a business & financial analysis twice a week. For the past nine years, he has been active in South America doing business development work for some of his portfolio companies, mentoring entrepreneurs and advising investors.
chile news, noticias chile

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment

Shout Out Your Comments!

Weather in the Capital

Santiago
13C
overcast clouds
humidity: 66%
wind: 2km/h W
H 13 • L 13
19C
Tue
23C
Wed
23C
Thu
20C
Fri
18C
Sat

Get the news everyday by email FREE!!! Enter your email here and click ok.

FBFPowered by ®Google Feedburner

I Love Chile Archives

Join Expat Community Spirit

FREE Digital Magazine

Sign up today and receive I Love Chile's weekly digital magazine every week direct to your inbox.







Follow us on Twitter

Learn to write in English with our academic experts.

Free academic writing guides for college and graduate ESL students.