MercoPress. South Atlantic News Agency

Santiago's Stock Exchange booms after Rejection won

Chile's left-wing government will make another attempt to get a progressive Constitution passed

Santiago's Stock Exchange reached peak figures Monday after Rejection prevailed in Sunday's referendum, which meant the welfare state failed at least for now to become a reality that would have also included differentiated judiciary systems for native groups.

Capitalism's ability to survive the political wave against it drove traders to up their investments, while the Chilean peso also gained some ground against the US dollar, perhaps also boosted by the national holiday in the United States, due to which there were no reference operations.

IPSA, Chile's main stock market index, jumped more than 6% compared to the previous day, reaching 6,013.31 points, its historical maximum according to Bloomberg, although by noon it had fallen to 5,757.89 points.

Recording the most profits Monday were Socovesa (+7.62%), Cencosud (4.93%), Enel Chile (4.58%), and SQM (3.03%), while among those who nevertheless had negative figures were Cencosud Shopping (-3.20%), Parque Arauco (-1.60%) and Vapores (-1.52%).

In this scenario, the IPSA was among the global indexes with the biggest growths, alongside Turkiye's BIST 30 and BIST 100, according to Bloomberg. The Santiago Stock Exchange is now in third place.

Chile's Electoral Service (Servel) announced Sunday that Rejection had won the referendum for a new, more progressive Constitution. Perhaps too progressive for its own good.

Chilean President Gabriel Boric Font has convened all members of his political alliance for a meeting after which changes to the cabinet are expected.

“I know that you expect answers and forceful solutions to the insecurity, the violence in the south, the housing deficit, the increase in the cost of living, the lack of care support, the reactivation of our economy, the eternal waiting lists in health, the quality of education and the low pensions,” explained Boric.

(Read also Chile: New Constitution rejected )