Santiago Market Edges Lower on Rate Pause and Profit-Taking

Santiago’s benchmark S&P IPSA closed at 8 041.14 CLP, down 18.26 points or 0.23 percent. The index traded between 7 960.71 and 8 070.44 CLP, undercutting the 8 000-point mark it had briefly reclaimed yesterday.

Trading volumes remained muted as investors booked modest gains after a recent rally. Local sentiment turned cautious after the Central Bank held its benchmark rate at 5.00 percent.

Officials signaled that they see persistent inflationary pressures and global uncertainties as reasons to pause further tightening. At the same time, first-quarter results from Banco de Chile and Enel Chile offered mixed cues.

Banco de Chile reported a 10.5 percent rise in net income, reflecting resilient lending, while Enel Chile cited stable demand and confirmed plans for hydroelectric capacity expansion.

On the commodities front, copper output jumped 22 percent in April to 105 000 tonnes, driven by steady overseas demand despite rising production costs. Meanwhile, exchange-traded funds in Latin America posted mixed flows.

Bitcoin ETFs drew $442 million in inflows during the week of April 24, signaling selective risk appetite, while broad LatAm equity ETFs saw modest outflows as traders awaited clearer U.S. data.

Chile’s IPSA Index

Global markets painted a similarly cautious picture. In New York, the Dow Jones rose 0.3 percent, the S&P 500 added 0.1 percent and the Nasdaq Composite dipped 0.1 percent after late-day rallies erased earlier losses.

In Europe, the FTSE 100 climbed 0.37 percent, Germany’s DAX gained 0.32 percent and France’s CAC 40 advanced 0.50 percent, buoyed by stronger bank earnings and mixed economic data.

Among IPSA components, Hites led winners with a 5.66 percent gain on robust same-store sales. Parque Arauco climbed 4.56 percent as foot traffic and rent renewals surprised on the upside. Colbún rose 3.49 percent after securing a new power export deal.

Embotelladora Andina and Falabella each added just under 2 percent on volume strength and margin improvements. On the downside, Pehuenche fell 4.81 percent amid a scheduled hydro maintenance shutdown.

Andina B dropped 3.57 percent on weaker export volumes. Banco de Chile slipped 2.11 percent on post-earnings profit-taking. Oro Blanco lost 2.08 percent as precious-metal prices softened, and SQM B edged down 1.87 percent after lithium prices eased.

Technically, the IPSA trades above its 200-hour moving average, maintaining its bullish medium-term trend. Bollinger Bands have narrowed, suggesting reduced volatility and a pending breakout.

The RSI sits near 55, indicating neutral momentum, while the MACD histogram shows a slight positive bias. Looking ahead, a decisive move above 8 070 CLP would confirm renewed upside momentum.

Conversely, a breach below 7 960 CLP could trigger short-term corrections. Investors will watch U.S. economic indicators and local inflation readings for fresh direction.