Chile’s IPSA Faces Pressure as Technical Signals Point to Ongoing Weakness

Chile’s S&P IPSA index closed at 8,029.71 on June 23, 2025, down 0.59% for the day. The IGPA index also declined, ending at 40,408 points, a drop of 0.52%.

These official closing figures confirm a negative session for Chilean equities. The daily IPSA chart shows the index below both its 20-day and 50-day moving averages, signaling a clear short-term downtrend.

The MACD indicator is negative and diverging, with the histogram showing persistent downward momentum. The RSI stands at 40.16, approaching oversold territory but not yet indicating a reversal.

Bollinger Bands reveal the index pressing against the lower band, highlighting increased volatility and the risk of further declines. The 4-hour chart supports this cautious outlook.

The IPSA remains below all key moving averages, the MACD is negative, and the RSI is at 37.26, suggesting the market is oversold on shorter timeframes but still lacks a catalyst for a turnaround. Price action and volume confirm that sellers remain in control.

Among the most active stocks, Banco de Chile, Falabella, Santander Chile, Enel Américas, Cencosud, SQM/B, Copec, Enel Chile, Mallplaza, and Empresas CMPC represent the largest weights in the IPSA.

On June 23, Grupo Security, Sociedad de Inversiones Oro Blanco, and Enel Américas were among the top gainers, while commodity and industrial names led the declines, though the specific daily losers are not detailed in the official data.

Fundamentals remain stable, with the Chilean market’s P/E ratio at 11.48 as of June 23, 2025, within its five-year average range. Inflation stands at 4.5%. Banco de Chile continues to deliver strong long-term returns, with a 174% gain over five years, reflecting solid earnings growth.

The IPSA has dropped 2.92% in the past week and 3.75% over the past month, but is still up 21.54% for the year. The market’s direction will depend on upcoming corporate results, local economic data, and shifts in investor sentiment.

Chile’s stock market remains under pressure, with technicals warning of more downside risk and no immediate signs of reversal. Investors are closely watching for stabilization in prices and clearer signals before making new commitments.