A spike in copper prices saw Chile's peso outperforming Latin American currencies. The Chilean peso jumped 1.2% to the dollar and was set for its best day in more than one month. Prices of copper reached a seven-year peak on expectations of strong demand from major buyer China.
Banco Santander Chile (BSAC) was the recipient of a large increase in short interest during October. On October 30th, short interest totalled 1,800,000 shares. This is a 24.1% increase compared to October 15th. Currently, 0.4% of the shares of the company are sold short. Based on an average daily volume of 533,700 shares, the days-to-cover ratio is presently 3.4 days.
Chile has announced a new two-tranche local currency bond offering that is Euroclearable and will be sold to both local and international accounts. Chile has appointed Citigroup, Santander and Scotia Capital, to lead the transaction which will comprise 2028 and 2033 bonds. Together they are expected to raise around $1.8 billion.
The government estimates that the second 10% withdrawal would have a maximum fiscal cost of $2.154 billion at present value. The minister of finance, Ignacio Briones, said that the cost may be less depending on the total amount of withdrawn money that is reimbursed.
Joyvio Group, owned by Chinese computer giant Legend Holdings, has agreed to purchase a $167 million perpetual bond issued by its arm that acquired Chilean salmon farmer Australis Seafoods. The bond follows a cash injection last month that increased Joyvio's share in the firm from 16.2% to 46.1%. The bond and cash injection come amid heavy losses at Agri-Joyvio, which acquired Australis Seafoods for $922 million in 2019.
Chile's GDP shrank 9.1% in the third quarter of 2020, compared to the same time period in 2019. According to the Central Bank, the reason for the decline is due to the economic effects of the COVID-19 pandemic. However, the GDP rose 5.2% compared to the second quarter which show signs of a slow recovery.
Sociedad Química y Minera de Chile (SQM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors. Three other investment analysts have rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the company. The stock has an average rating of “Hold” and a consensus target price of $29.42.
In the context of COVID-19 Argentina, Uruguay and Chile are organising a forum to attract investors with a focus on emerging companies. The Southern Cone Investment Forum (FICS) is a virtual event that aims to show the strength and economic appeal of these South American countries. The event will be held on 24th & 25th November.
Banco Santander-Chile announced an annual dividend. Shareholders will be paid a dividend of $0.465 per share by the bank on December 4th. This represents a yield of 3.7%. This is a boost from Banco Santander-Chile’s previous annual dividend of $0.42.
Chilean President Sebastián Piñera acknowledged that two million jobs have been lost in a few months as a result of the economic impact of the Covid-19. The figure is equivalent to what was created in the last ten years. Piñera said that recovering those jobs will be one of the government's priorities. He added that the economic recovery plan in Chile involves a major effort equivalent to 11% of the Gross Domestic Product (GDP).