Chile sees peso hit 5 year high

In Chile in Thursday, the peso hit a five-year high when it traded at 550.50/551.00 to the US dollar as higher-than-expected inflation figures that set off speculation that interest rates will rise when the central bank meets next week.

However, stocks declined on profit-taking following a rally that has lasted a month. The IPSA index was down 1 percent at mid-day to 2,176.28, while the IGPA index fell 0.64 percent to 9,977.77.

The IPSA has gained around 6 percent since the end of June. Mobile phone company Entel lost 3.7 percent to 5,200 pesos and Almendral, its controlling shareholder fell by 3 percent to 32.35 pesos on the news that American Movil, based in Mexico, has expanded further into the market in Chile with its acquisition of Chile’s third-largest mobile phone company, Smartcom.

Also seeing a drop in share value was CAP. The steelmaker fell 2.23 percent to 7,225 pesos. One of the few gainers on the blue-chip ISPA was electric generator Colbun, which was up 2.21 per cent to 74 pesos per share.

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