Chile: Santiago Stock Exchange opens 7.27% down after Boric’s victory
RIO DE JANEIRO, BRAZIL – The S&P IPSA Index, the main index of the Santiago Stock Exchange, opened Monday down 7.27%, at 4,041.10 points, in a market reaction to the victory of far-left Gabriel Boric in Chile’s presidential elections.
Although all papers are in negative territory, the sharpest falls are from Cencoshopp (-15.44%), Aguas-A (-12.67%), and SQM-B (-10.40%).
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Diego Pereira, economist at J.P. Morgan, said that to minimize volatility risks, Boric will have to give quick signs of moderation to the market and reveal who will be the occupants of some of the top posts in the new government, such as the Ministry of Economy.
Also, in reaction to the victory of the leftist, the dollar reached a new historic high on Monday, being traded at 872.61 pesos at the beginning of operations. Still, shortly after, it retreated to 860 pesos.
In the New York pre-market, the iShares MSCI Chile (EWZ) index fund (ETF), which reflects the main Chilean stock index in dollar terms, was down 5.00% at 22.98 points.
According to analysts, the dollar could surpass the 900 peso barrier, pressured by investors’ uncertainties about Boric’s new government.
“This behavior occurs because investors prefer more pro-market policies and are wary of the conditions that will exist in Boric’s presidency. In this scenario, [the dollar] could perfectly break the 900 pesos in the concise term,” said Ricardo Bustamante from the consultancy Capitaria.
In the most polarized race in the country’s history, Boric got 55.9% of the vote out of 99.8% of the polls counted, beating far-right candidate Jose Antonio Kast, who got 44.1% of the votes counted.
The 35-year-old president-elect is the son of an upper-middle-class family and a former student leader with ties to the Communist Party, a strong supporter of feminist and minority causes.
Boric became eligible to be president of Chile only in February of this year, as the country requires a minimum age of 35 for the office, thus becoming the youngest president in Chilean history.
In a statement on the Twitter social network, he thanked for the mandate, for which he said he was honored, and said that he is early on working toward what is to come.
With information from Diario Financiero
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+1.55%
174,576.80
+1.55%
65,522.56
-0.38%
11,450.75
-0.76%
3,009,029
+0.46%
2,508.47
-0.09%
60,117.56
+0.55%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 174,576.80 | +1.55% | +21.85% | 171,906.72 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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