The Santiago Stock Exchange accumulates a weekly drop of 10.8% after the elections

RIO DE JANEIRO, BRAZIL – The Santiago de Chile Stock Exchange rebounded 1.24% this Thursday after three days of negative records. Still, it ended the week with an accumulated fall of 10.8 % as a reaction to the electoral results of last Saturday and Sunday.

The IPSA, the main index of the Chilean stock exchange, closed this Thursday at 4,080.47 points and will not trade until Monday, given that this Friday is a holiday in the country due to the commemoration of the Naval Glories.

The shares that rose the most this day were those of the retail company SMU (10.68 %), the electricity company Colbún (8.56 %), and the telecommunications company Entel (8.54 %).

The biggest falls were suffered by the supermarket chain Cencosud (-3.14 %), the service station chain Copec (-1.77 %), the construction company ILC (-1.25 %), and the retail company Ripley (-1.2 %).

Every week, the worst-performing shares were those of the water supply and sanitation company Aguas Andinas (23.9 %) and the investor Inversiones La Construcción (-21.7 %).

The markets’ reaction is partly explained by the defeat of the pro-government right-wing in the constituent elections. It did not obtain the third of the 155 seats it needed to influence the drafting of the new text that will replace the current one in force since the dictatorship.

The constituent elections favored opposition, leftist and independent citizen candidacies, which are critical of the current economic system in force in the country and will have the opportunity to generate changes from the new Magna Carta.

The right-wing is more in favor, in general terms, of maintaining the same economic model as at present, with a secondary State in the provision of basic services, in force since the military dictatorship of Augusto Pinochet (1973-1990), a model that could be modified during the constituent debate.