Chile stocks rise following growth data, peso gains
SANTIAGO, July 31 (Reuters) - Chilean stocks traded higher in early afternoon trade on Tuesday, following the release of stronger-than-expected economic data, while the peso gained against the dollar.
The all-market IGPA stock index <.IGPA> gained 0.65 percent to 14,922 points, while the trade-weighted blue-chip IPSA index <.IPSA> advanced 0.91 percent to 3,366.
"The market has completely recovered since last week," a trader said. "Today in Chile data on unemployment, industrial production and other figures were released. They were better than the market expected."
June industrial production grew 6.7 percent over 12 months, easily outpacing analysts' forecasts of 4.8 percent, while second-quarter unemployment came in at 6.9 percent, the lowest for the period in nine years.
"On top of that, world markets are up too," the trader added.
Endesa Spain's heavily weighted electric utilities continued regaining ground lost last week after disappointing earnings reports, as shares of energy group Enersis (ENE.SN: Quote, Profile , Research) rose 2.04 percent to 186.98 pesos and generating affiliate Endesa Chile (END.SN: Quote, Profile , Research) advanced 1.06 percent to 765 pesos.
Government data on Tuesday confirmed electricity generation grew 6.6 percent in June compared with the same month last year on greater demand from mining and industrial sectors.
Retail sector gains were led by diversified regional retailer Cencosud (CEN.SN: Quote, Profile , Research), which gained 1.83 percent to 2,170 pesos a share. Chile's retail sector has been bolstered by rising employment and by continued growth in consumer spending.
Other blue-chip advancers included leading brewer CCU (CCU.SN: Quote, Profile , Research) and No. 1 wine exporter Concha y Toro (CHT.SN: Quote, Profile , Research), with gains of 2.96 percent and 2.03 percent.
The Chilean peso rose 0.29 percent to 521.50/521.80 per dollar compared with Monday's close at 523.00/523.30, while inflation-adjusted five-year central bank bond yields rose to 2.92 percent from the prior session's close at 2.88 percent.
The all-market IGPA stock index <.IGPA> gained 0.65 percent to 14,922 points, while the trade-weighted blue-chip IPSA index <.IPSA> advanced 0.91 percent to 3,366.
"The market has completely recovered since last week," a trader said. "Today in Chile data on unemployment, industrial production and other figures were released. They were better than the market expected."
June industrial production grew 6.7 percent over 12 months, easily outpacing analysts' forecasts of 4.8 percent, while second-quarter unemployment came in at 6.9 percent, the lowest for the period in nine years.
"On top of that, world markets are up too," the trader added.
Endesa Spain's heavily weighted electric utilities continued regaining ground lost last week after disappointing earnings reports, as shares of energy group Enersis (ENE.SN: Quote, Profile , Research) rose 2.04 percent to 186.98 pesos and generating affiliate Endesa Chile (END.SN: Quote, Profile , Research) advanced 1.06 percent to 765 pesos.
Government data on Tuesday confirmed electricity generation grew 6.6 percent in June compared with the same month last year on greater demand from mining and industrial sectors.
Retail sector gains were led by diversified regional retailer Cencosud (CEN.SN: Quote, Profile , Research), which gained 1.83 percent to 2,170 pesos a share. Chile's retail sector has been bolstered by rising employment and by continued growth in consumer spending.
Other blue-chip advancers included leading brewer CCU (CCU.SN: Quote, Profile , Research) and No. 1 wine exporter Concha y Toro (CHT.SN: Quote, Profile , Research), with gains of 2.96 percent and 2.03 percent.
The Chilean peso
Labels: Chile, employment
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