Monday, January 18, 2010

Chilean Stocks Rise After Presidential Win: Stocks to Watch

Chilean stocks are up today after Sebastian Pinera was elected president in a move to the right for the country, after 20 years of center-left rule.

BCI brokerage said that they expect a significant increase of foreign capital inflows into the local stock market and the moves could be magnified by the fact that markets in the United States are closed today.

BCI added that limits on how much pension funds can invest, attractive investments in foreign markets, and a sharp appreciation of the Chilean peso could cap gains.

Please note that we track all Chilean stocks that trade in the U.S. (ADRs) here.

Here are the stocks ordered by RSI7 monthly and RSI-A (average of all RSIs timeframes):

Unfortunately, the stocks are already clearly overvalued.

You may receive technical analysis and alerts of these stocks, sent automatically to you, by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Reuters reports that:

"Industrial conglomerate Copec, the heaviest-weighted stock on the bourse, was up 1.12%.
Shares in SQM, Chile's leading exporter of fertilizer and the world's biggest producer of iodine and lithium, were up 0.51%. The stock had fallen 1.8% on Friday.

Shares in airline LAN (LFN) see-sawed in volatile early trade amid uncertainty over how Pinera will sell his major stake at the top carrier as pledged. The share was up 0.25$ after having surged 2.65 percent.

Pinera holds a more than 25% stake in LAN but has vowed to set aside his business empire to concentrate on the presidency.

LAN will stay very volatile because we don't know what will happen to Pinera's shares," said Leonor Skewes, senior analyst at BICE Inversiones. "It's very likely that the Cueto family (major shareholders) will buy a percentage, but it's uncertain who will buy the remaining shares and for how much."

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