Chile's peso closes weaker; stocks post early gains
Chile's peso closed weaker against the U.S. dollar on Tuesday, dragged down by profit-taking, while stocks opened higher on rising global bourses, traders said.
The peso CLP=CL opened higher on encouraging U.S. economic data but closed 0.33 percent weaker at 547.30/547.60 per U.S. dollar compared to Monday's close of 545.50/546.00.
Chile's currency has gained 17.12 percent against the greenback so far this year after slumping 22.3 percent in 2008.
In the stock market, Chile's blue-chip IPSA index .IPSA rose 0.43 percent to 3,258.49 points and the all-market IGPA .IGPA was up 0.33 percent to 15,434.69.
The market is positive, reacting to external markets, principally the United States, said Rodrigo Andaur, an analyst with FIT Research. Today's gains in the local market have been moderate compared to global bourses, driven by the electricity and retail sectors.
The electricity sector has tumbled in recent weeks, but rose in early trading as investors anticipate lower electricity prices in coming months, Andaur said.
The early gains largely reversed losses sustained by investor profit taking on Monday. However, the ISPA has stagnated in recent sessions, a trend that could continue through the remainder of the year as the market has likely reached its ceiling, local analysts said.
The Dow Jones industrial average .DJI rose to hit 2009 highs on strong housing and consumer confidence data, but later eased gains.
On the local market, Endesa (END.SN), Chile's largest power generator in terms of installed capacity, was up 0.68 percent to 860 pesos per share, while Chile-based regional energy group Enersis (ENE.SN), was up 0.84 percent to 200 pesos.
Chilean steel and iron ore producer CAP (CAP.SN) was positive 1.17 percent to 13,800 pesos.
The world's biggest producer of iodine and lithium Soquimich (SQM_pb.SN), was off 0.32 percent to 19,900 pesos per share. (Reporting by Aaron Nelsen; Editing by Kenneth Barry)
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