Chilean Stocks Edge Up as Market Tests Resistance, Led by SQM Surge and Real Estate Slump

The S&P IPSA index in Santiago closed June 4, 2025, at 8,169.98, up 1.5% from the previous session, according to official exchange data and the attached chart.

The market attempted to break its recent downtrend, rebounding from a week-long slide that began after the index’s late-May peak.

This move followed a technical breakdown on May 28 that pushed the IPSA below its 50-day moving average, a key support level now acting as resistance.

Trading volumes increased as the IPSA tried to reclaim the 8,200–8,250 range but failed to close above the 50-day moving average. The price action remained within the Ichimoku cloud, signaling volatility and uncertainty.

The market did, however, close above the 9-day moving average, indicating a potential shift in short-term sentiment. Bollinger Bands widened, reflecting increased volatility, while the Relative Strength Index (RSI) hovered near 60, showing neutral momentum.

The MACD histogram showed a slight improvement but did not confirm a clear reversal. These technical signals suggest the market is in a fragile recovery phase, with sellers still in control.

Sociedad Química y Minera de Chile (SQM) stood out as the day’s top gainer, rising 5.5% after analysts reaffirmed their outlook despite recent price target cuts. The stock traded as high as $32.64, with volume down from its average, signaling selective buying.

Hites S.A. also posted strong gains, up 8%, while ABC SA advanced 4.1%. Utilities such as Enel Chile and Enel Americas saw modest gains of 1.4% and 0.6%, respectively, as investors rotated into defensive sectors.

On the losing side, construction and real estate stocks faced renewed pressure. Socovesa dropped 3.1%, and Plaza fell 2.2%, reflecting continued concerns over sector fundamentals.

Santander Chile slipped 1.2%, mirroring weakness in financials amid global rate concerns. Compared to regional peers, Chile’s IGPA index remains up nearly 25% for the year, outperforming many emerging markets, though the recent correction has pulled it off its all-time high set in May.

The market’s price-to-earnings ratio stands at 12.08, moderate relative to other Latin American bourses. Fundamental data released this week showed Chile’s economy grew 0.7% in the first quarter, beating forecasts.

Year-on-year growth reached 2.3%, led by trade and services, though mining and construction lagged. The central bank kept its policy rate at 5%, and inflation slowed to 4.5% in April.

The Chilean peso closed stable at 944.22 per dollar, reflecting steady currency markets. Globally, U.S. stocks extended gains, with the S&P 500 nearing record highs, while European markets paused after a long rally.

Chile’s market remains sensitive to external shocks and commodity prices, but strong fundamentals and cautious optimism support its current stabilization.