SANTIAGO, Jan 7 (Reuters) - Chilean stocks extended a
multisession losing streak in afternoon trade on Monday, as
investors mulled a U.S. recession and higher domestic interest
rates, while the peso gained against the dollar.
The blue-chip IPSA index <.IPSA> slid 1.2 percent to 2,872
points, its eighth consecutive decline, while the all-market
IGPA index <.IGPA> declined 1.0 percent to 13,397 points.
Chilean stocks fell sharply on Friday after weak U.S. labor
data and reports of higher-than-expected domestic inflation
raised worries about impending rate hikes.
"There are worries about a U.S. recession," said an
analyst. "On the other hand, there are studies saying Chile's
central bank could raise the interest rate by as much as a half
a percentage point."
Chile's central bank has been raising its benchmark
interest rate despite cooling economic growth, to curb spiking
inflationary pressures.
Blue-chip losses on the Santiago exchange were led by
industrial conglomerate Copec <COP.SN>, whose shares fell 1.46
percent. Copec is weighted at 16.5 percent of the blue-chip
index.
Retail sector losses included regional giant Falabella
<FAL.SN>, down 1.36 percent and supermarket operator D&S
<DIS.SN>, with a loss of 2.6 percent.
Endesa Spain regional investment group Enersis <ENE.SN>
fell 1.35 percent while power generating affiliate Endesa Chile
<END.SN> fell 0.65 percent.
Steel producer and iron ore miner CAP <CAP.SN> retreated
2.42 percent to 12,100 pesos a share.
The Chilean peso <CHILJ> <CLP=CL> strengthened 0.49 percent
to close at 493.30/493.60 per dollar compared with Friday's
close at 495.70/496.00.
(Reporting by Manuel Farias; Writing by Lisa Yulkowski;
editing by Gary Crosse)
(([email protected]; +56-2-370-4250))
Keywords: MARKETS CHILE/