Chilean Stocks Retreat Slightly as Inflation Eases, Airlines and Utilities Lead Gainers

S&P IPSA index closed at 8,162.87 points on May 8, falling 0.10% after yesterday’s substantial rally. The broader IGPA index retreated to 40,830.42 points, shedding 40.23 points in modest profit-taking after reaching near record territory.

Trading volume increased 9% from the previous session, confirming robust participation despite the pullback. Chile’s macroeconomic backdrop showed improvement with annual inflation easing to 4.5% in April, below the forecasted 4.6% and down from 4.9% previously.

The central bank has maintained its benchmark rate at 5% while the country’s unemployment rate stands at 8.7%. Chile’s trade surplus widened to $1.923 billion in April, bolstered by strengthened gold exports and increased industrial output.

LATAM Airlines topped the gainers list with a 5.6% jump as passenger traffic rebounded and fuel costs declined. Enel Chile followed with a 5.2% advance on stronger power demand projections.

Enel Generación added 3.3% after securing new renewable energy contracts. Falabella gained 5.1% on positive retail sales data. Sociedad Química y Minera rose 2.3% amid lithium price strength.

Aguas Andinas led decliners, dropping 2.8% on lower water consumption reports. CAP fell 1.3% due to steel price pressure. Banco de Crédito slipped 1.1% amid tepid loan growth concerns.

Ripley lost 1.0% following underwhelming margin guidance. CMPC declined 0.8% as pulp shipments slowed. Technical indicators remain cautiously bullish. The IPSA trades comfortably above its 50-day and 100-day moving averages.

IPSA Builds Momentum Amid Global Tailwinds

The 20-day exponential moving average crossed above the 50-day line, triggering buy signals among trend followers. The Relative Strength Index approaches 69, signaling strong momentum but nearing overbought territory. Bollinger Bands have widened, reflecting heightened volatility.

Support levels sit at 8,100 and 8,040 points, while immediate resistance appears at 8,210. The Moving Average Convergence Divergence histogram expanded, reinforcing the upward bias despite today’s minor retreat.

Global context provided mixed signals for Chilean assets. Wall Street gained as trade optimism lifted sentiment, with the S&P 500 rising 0.6% and Nasdaq adding 1.1%. Foreign inflows into Chilean ETFs reversed a week of outflows, attracting $45 million to local equity funds.

The IGPA has gained 21.22% since January, outperforming many regional peers. Market watchers now focus on upcoming U.S. employment data and scheduled U.S.-China trade talks this weekend.

Chile’s central bank meets next week with steady interest rates expected amid the encouraging inflation data. The index trades at a price-to-earnings ratio of 10.1, below historical averages but up from 8.8 a year ago, suggesting gradually increasing investor confidence in Chilean corporate earnings.