MercoPress. South Atlantic News Agency

Chile's stock market looses 9.57% in Oct.; Peso down 26% in 08

Chile's stock market climbed 1.93% on Thursday but finished the turbulent October 9.57% down. As with most global markets Chile's bounced back following on a better performance in Wall Street and the Sao Paulo Bovespa index.

Meantime the US dollar rose to 676 Chilean pesos on strong demand to renew forward operations, according to Santiago money market dealers. This means the US dollar in Chile ended October with an increase of 124 pesos, and so far in 2008 the local currency has depreciated 26.3%. In 2007 the Chilean peso appreciated 6.44% against the US dollar. "The Peso opened strongly on the back of the favourable evolution of foreign markets in response to the Fed's 50 points cut of the interest rate, but later plunged because of a strong demand of US dollars to renew forward operations", said a Santiago money dealer. At the beginning of trading the Peso was up 2% against the US dollar, but demand for forward operations and a 10% fall in the futures price of copper because of expected weaker demand, boosted the US currency. Copper has fallen dramatically from almost 4 US dollars the lb to below 2 US dollars although at the end of this week's trading it was back in the range of 2.10. Thursday operations closed October and the week since Friday is a bank holiday and operators won't return until next Monday.