By Carla Mozee
Chilean stocks dropped more than 2% Monday, the first day of
trading after a massive earthquake left hundreds dead and
interrupted power supply in the world's largest copper-producing
country.
Chile's IPSA index fell 2.1% to 3,745, with the pullback
arriving one session after the blue-chip index closed at its
highest level ever.
In Santiago, shares of market heavyweight and pulp and paper
provider Copec slumped 3.3%. Stock in air carrier Lan Airlines
(LFL) lost 2.1%, while shares of fertilizer maker SQM (SQM) and
Banco de Chile (BCH) each gave up 1%.
Just a handful of stocks managed to move higher, with shares of
construction firm Salfacorp up 5.3%, and forestry products company
Masisa up 4%.
In New York, the Bank of New York Mellon's index tracking
U.S.-listed shares of Chilean companies (16899W19) fell 1.3%.
Among exchange-traded funds, the iShares MSCI Chile Investable
Market Index Fund (ECH) fell 1.9%.
Meanwhile, the country's currency rose against the U.S. dollar
as copper prices surged, lifted after some mining operations in
Chile were halted because of the earthquake.
Copper prices had been up more than 6%, but recently rose as
much 2.1% to 3.35 a pound.
The currency recently traded at 522.95 pesos per greenback,
compared with Friday's close at 529.80 pesos.
Chilean mining giant Codelco said it plans to used plants in
northern Chile to make up for the disruptions.
Codelco is not publicly listed.
An 8.8-magnitude earthquake hit about 70 miles from the city of
Concepcion in the early morning hours of Feb. 27. Chilean President
Michelle Bachelet recently said more than 700 people have been
killed and more than 2 million people have been displaced.