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22/08/2007: Chilean stock market leads the recovery of regional markets

Wednesday August 22, 2007

After falling last week:
leading Chilean stock market recovery regional markets

Experts highlight the strengths of the local economy and the "shield" the financial market.

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A rise of 5.9% has accumulated in the last three days, the local Stock Exchange. While the above is in line with international market trends in Chile market recovery has been particularly successful.

In fact, yesterday the local main index, the IPSA, posted its second biggest gain of the year, gaining 2.59%.

This is due, according to a study by Santander Investment, for the Chilean economy is in a better position than in the past to face the financial turmoil now facing the markets. Continue reading this news.

Wednesday August 22, 2007 Yesterday

IPSA recorded its second biggest gain of the year and rose 2.59%:
leads local stock recovery between regional markets

Rosario Zanetta B.

the past three days, the stock market has grown 5.9%. Thus, the profitability in the year reached 16.44%.
Wall Street yesterday had a mixed session, the Dow Jones fell 0.23%, while the Nasdaq and the S & P-500 recorded gains.

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ZANETTE B. ROSARIO

Almost 6%. That is what has regained Santiago Stock Exchange in the past three sessions, in line with the progress we have also had international markets since last Friday.

So much so, that the local main index, the IPSA, saw its second biggest rise yesterday of the year. The selective grew 2.59% and reached to 3136.01 points. The advance was only surpassed by the surge that saw the local market on 28 February this year, when it climbed 3.0% after the previous session the IPSA recorded a fall of 4.97% (the return on year, therefore, comes to 16.44%).

This coincides with statements by Paulo Leme, managing director for emerging markets at Goldman Sachs. Leme

Bloomberg said yesterday that if bags as Brazilian or Chilean recover faster today than 10 years ago is that the amount of local investors has increased, becoming more robust negotiations.

So if the Brazilian Bovespa took about a month and a half to recover from the crisis that hit stock markets in February, after the Chinese crash, Chile and Mexico showed a similar resistance.

In fact, after heavy losses in late February this year, the IPSA began a recovery such that by April 19 had already absorbed the losses of the previous months. Exactly one month and a half later.

regional level in recent days has led the Chilean plaza level recovery in equity markets.

By comparing the variations that have been the main Latin American wheels from the close last Thursday until yesterday, in dollars, it is concluded that only the square Argentina has outgrown its local simile.

Although the Argentina conference was closed on Monday for a local holiday, the Merval has leased from 6.90% late Thursday, while Chile's IPSA has grown 6.53% in the same period. The Bovespa, meanwhile, has recovered 3.98% in the same number of sessions.

To this is added to the volatility also shows the local market relative to other markets in the region.

Chile, more stable

According to a ranking by BCI brokerage firm, in mid-June if Chile accumulated a volatility 12 months of 14.5%, today the local market shows levels of dispersion of 15.8%. Despite the increase in standard deviation clearly attributable to the international financial turmoil, "the country remains the most stable place in the region, followed by Mexico, with a deviation of 18.5%. Strong statements



Yesterday, much of the optimism in world markets due to a series of statements made by different authorities.

President of the U.S. Federal Reserve (Fed), Ben Bernanke, for example, he said Sen. Christopher Dodd, who is willing to use "all means at its disposal" to ease to world markets.

This was read in different markets such as the opening of the Federal Reserve for a possible rate cut by the entity at its September meeting.

also the secretary of the U.S. Treasury, Henry Paulson, said yesterday that "there will be no quick solution to certain problems that affect markets," and recommended investors to be patient. "We will solve them because we have a strong economy."

Yesterday, the Dow Jones closed with a slight drop of 0.23% in the session, while the Nasdaq and the S & P-500 showed recovery of 0.51% and 0.11% respectively.

In Asia, meanwhile, the Shanghai Stock Exchange reached a new high, after rising 1.03%. And just yesterday, the Chinese People's Bank announced a new hike in interest rates, the fourth in the year to curb inflation.