To: James Strauss who wrote (16297 ) 9/6/1998 2:42:00 PM From: Glenn D. Rudolph Respond to of 164684
Chile stocks fall on worries about LatAm's health Reuters Story - September 04, 1998 17:24 %CL %EMRG %LATAM %LDC %STX %.SN .IPSA .IGPA .ADRIAN V%REUTER P%RTR SANTIAGO, Sept 4 (Reuters) - Chilean stocks ended lower on Friday amid more panic about the health of Latin American markets, traders said. The IPSA index of the 40 leading stocks broke through the 60-point wall, falling 2.98 percent to end at 59.75 points, its lowest close since December 9, 1993. It ended down 8.15 percent on the week. The broader IGPA gauge slid 1.81 percent to 3148.26 points, and the ADRIAN index, which reflects the local share prices of all Chilean companies with American Depositary Receipts, dropped 2.46 percent to 632.58 points. At a meeting of the International Monetary Fund (IMF) in Washington, U.S. and Latin American economic authorities tried to console markets. The IMF Managing Director Michel Camdessus said the medium- and long-term outlook for the region remains strong, and Mexican Finance Minister Jose Angel Gurria said the IMF, the World Bank and the Inter-American Development Bank gave the policy makers assurances of support, if required, for their economies. But investors in Chile were not convinced, traders said, adding that they fear a devaluation in Brazil. Locally, traders heard rumors that Chile's central bank could widen the ceiling on the peso's trading band. The peso ended weaker at 474.30/474.60 per dollar compared with the previous day's 473.10/473.40 on rumors of devaluations in the region and Chile and despite the central bank's having sold dollars, traders said. Volume was low at $8.69 million, down from Thursday's $12.03 million. Thirteen stocks rose, 51 fell and 28 ended unchanged. Stocks are expected to continue their negative tendency on Monday unless economic developments in the region and Russia brighten, traders said. "I think we will fall more next week," a trader said. "I don't see this market going up yet for six more months. I wouldn't be surprised if (the IPSA share index) went to 50 (points)."