Chilean Stocks Climb Steadily Amid Global Rally on U.S.-China Trade Breakthrough

The Chilean stock market extended its upward trend on May 13, 2025, with the S&P IPSA index gaining 42.57 points (+0.51%) to close at 8,368.76.

The broader IGPA index advanced 1.08% to reach 41,600.34, approaching its all-time high of 41,748.70. Trading volumes remained robust throughout the session. Global markets rallied strongly following the weekend announcement of a breakthrough US-China trade agreement.

The deal slashed US tariffs on Chinese goods from 145% to 30%. China reduced rates on American products from 125% to just 10%. This 90-day tariff reduction sparked significant gains worldwide. The Dow Jones jumped 2.8% while the tech-heavy Nasdaq soared 4.4%.

Consumer Discretionary stocks led Chilean market gains with a 6.83% weekly increase. Utilities rose 2.24%. Materials gained 2.03%. Consumer Staples improved by 1.38%. Financial stocks added 1.46%.

Industrials advanced a modest 1.00%. These sectors benefited from improved trade outlook and stable copper prices. Retailer Falabella topped the winners list with an 8.4% weekly surge to CL$4,770.

LATAM Airlines gained 7.4% to reach CL$16.60. Banco de Crédito e Inversiones climbed 4.8% to CL$39,500. Empresas Copec rose 4.8% to CL$6,600 despite mixed Q1 results. Plaza added 6.4% to close at CL$2,330.

Energy firm Enel Generación Chile fell 4.9%, making it one of the day’s biggest losers. Conglomerate Quiñenco dropped 6.1%. The Technology sector declined 1.46%. Healthcare stocks decreased by 0.70%.

Chilean IPSA Index Outlook

Telecom companies slipped 0.46%. These laggards reflected investor rotation toward cyclical and value stocks. Technical indicators point to continued bullish momentum for the IPSA index. The 50-day moving average provides strong support at 8,069.

The RSI reads 65, signaling positive momentum without reaching overbought territory. MACD trends confirm a buy signal. Bollinger Bands display compressed volatility near the key 8,300 resistance level.

The chart shows a strong medium-term uptrend since January 2025. Price action maintains position above all major moving averages. Current consolidation occurs near all-time highs with decreasing volatility. Volume patterns suggest accumulation rather than distribution.

Chile’s market capitalization now totals CL$184.7 trillion (approximately $196 billion). This represents a 9.1% increase from April’s CL$169.3 trillion value. The market trades at a Price-to-Earnings ratio of 10.1x, below many global peers despite the sustained rally.

Empresas Copec released Q1 2025 results showing EBITDA of $774 million. Its energy division grew EBITDA by 6.1% year-over-year to 309,949 million Chilean pesos. The forestry division struggled with lower pulp prices and reduced volumes.

Bank of America economist Aditya Bhave noted the tentative nature of the trade agreement. “The tariff reprieve aids sentiment, but Chile’s export reliance demands lasting solutions,” Bhave stated. Analysts predict the IGPA will trade at 40,683.35 points by quarter-end.

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