Bolsa regains ground but records his worst start to the year since 2013

This Friday, the Santiago Stock Exchange has reversed the losses recorded in the last two sessions, in line with the good performance of foreign markets. Meanwhile, at half – yearly level, the numbers show that the local market has had its worst start since the year since.

This Friday, IPSA – the leading indicator of the local stock market – has risen by 0.83% at 5,301 points, coupled with the recovery of global markets after calm in trade disputes. Analyzed by semester, the selective accumulates a contraction of 4.73% which leads to mark its worst beginning of the year since 2013.

The main engine of the stock market was the performance of Copec securities, which posted a daily rebound of 2.20% and reached the value of 8,221.

Regarding the winning companies of the session, the protagonism was attributed to the retail sector. Parque Arauco led with a jump of 4.06%, followed by Forus with 3.09% and third place with Ripley with a lead of 2.69%.

Local Market Under Pressure

The Global Dollar Strength, Increased Trade Disputes and a More Aggressive Tone by the Federal Reserve Have Created the Perfect Scenario for Emerging Markets to Lose ground.

From the market they commented that Latin America has received the greatest impacts. The Merval, main indicator of the trans-Andean market, closed the semester with a decrease of 13.49% and Ibovespa of Brazil fell by 4.76%. In the case of Wall Street, the result was mixed: the Dow Jones fell 1.81% in the first six months of the year, while the S & P500 rose 1.67%.

The Fed's signals indicate four rate increases in 2018, as well as the strength of the multilateral dollar, have strongly affected currencies in the region. The Argentine peso fell by 35.62% during the first months of the year and the real of 14.65% over the same period.

With this scenario, the half-yearly profits were dominated by CMPC with an advance of 14.94%, supported by the strong rally that was experimenting with cellulose. Concha y Toro finished second with a jump of 14.81%. According to one industry executive, its good results are due to the fact that being an exporting company, its sales are received in dollars.

In contrast, the securities of companies exposed to the depreciation of emerging currencies. to the North American currency, they lost ground. The list of the biggest losses of the semester is led by Vapores with a contraction of 43.93%, followed by La Polar with a fall of 28.53% and in third place Latam with a fall of 25.64%.