SANTIAGO, Dec 17 (Reuters) - Chilean stocks fell with
global markets in early afternoon trade on Monday and Ripley
shares tumbled after the retailer sold stock to finance its
expansion. The peso slipped against the dollar.
The all-market IGPA stock index <.IGPA> declined 0.94
percent to 13,768 points, while the trade-weighted blue-chip
IPSA index <.IPSA> fell 1.24 percent to 2,994 points.
Last week Chilean stocks suffered their biggest one-week
setback in years as the IGPA fell nearly 6 percent as global
markets weakened on concerns about U.S. subprime credit
fallout.
"The foreign situation is pretty complicated. Markets think
the Fed rate cut last week of only a quarter point was
insufficient, despite measures it took with other central banks
regarding the credit situation," said Rodrigo Sarria, deputy
manager with the Intervalores brokerage in Santiago.
"On top of that our central bank raised the rate last week,
which will raise credit costs and lower corporate earnings."
Blue-chip declines were led by department store Ripley
<RIP.SN> as its stock slid 5.9 percent to 560 pesos a share.
Ripley said on Monday it raised some $151 million in a stock
offering priced at 555 pesos a share to finance regional
expansion.
Other retail declines included Falabella, down 2.05 percent
to 2,470 pesos a share.
Industrial conglomerate and wood pulp producer Copec
<COP.SN>, the bourse's most heavily capitalized stock fell 1.3
percent to 8,150 pesos a share.
Electric utility stocks also pulled indexes lower, with
regional energy group Enersis <ENE.SN> and leading generator
Endesa Chile <END.SN> down 1.97 percent and 1.74 percent.
Other declining issues included shipper Vapores <VAP.SN>,
down 1.79 percent and LAN <LAN.SN>, slipping 1.39 percent.
The Chilean peso <CHILJ> <CLP=CL> eased 0.36 percent to
500.00/500.40 per dollar compared with Friday's close at
498.20/498.50.
Traders said the peso's value was contained by high U.S.
inflation figures for November, which reduced probabilities for
further U.S. rate cuts.
Chilean inflation-adjusted five-year central bank bond
yields <CLBCU5Y=RR> rose to 2.98 percent compared to 2.95
percent at the close of the previous session. (Reporting by Manuel Farias; Writing by Lisa Yulkowski;
Editing by Tom Hals)
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Keywords: MARKETS CHILE/
Keywords: MARKETS CHILE/=2