By Froilan Romero
SANTIAGO, Nov 22 (Reuters) – Latin American currencies started Monday with mixed behavior, in a session in which the Chilean peso led gains after the first round of the presidential elections led by conservative candidate José Antonio Kast , a staunch defender of the free market.
* The Chilean peso rose 2.38%, to 809.50 / 809.80 units per dollar, after opening the session with an advance of 3.7%. Meanwhile, the leading index of the Santiago Stock Exchange, the IPSA, soared 7.62%, to 4,687.70 points to its highest since May of this year.
* With 99.99% of the polling stations counted, the ultra-conservative candidate Kast obtained 29.91% of the votes, ahead of the leftist candidate Gabriel Boric who obtained 25.83%. Both will be measured in the ballot on December 19.
* “The main bearish factor of the dollar peso parity today are the results of yesterday’s elections. Chile voted for the extremes in the first round of the elections,” the consulting firm Mercados G. said in a note early Monday.
* Meanwhile, the dollar rose in global markets after the president of the United States, Joe Biden, decided to propose for a second term the current chairman of the Federal Reserve, Jerome Powell.
* The dollar index, which measures the greenback against a basket of six major currencies, totaled about 0.3%, a high since July 2020, driven by Biden’s decision.
* The Mexican peso was trading at 20.9073 per dollar, with a loss of 0.4% compared to 20.8240 in the Reuters reference price on Friday, in its third consecutive day of decline.
* “During the week, the performance of the financial markets will depend mainly on the publication of relevant economic indicators and news about the progress of the fourth wave of coronavirus,” said financial group Banco Base in an analysis note for its clients.
* The main stock index S & P / BMV IPC, which is made up of the 35 most liquid companies in the Mexican market, fell 0.13% to 50,746.09 points, with investors’ attention placed on new restrictions due to COVID-19 in Europe already waiting for relevant economic information.
* The Brazilian real appreciated 0.65%, to 5.5772 units per dollar, while the Bovespa index of the B3 stock exchange in Sao Paulo climbed 1.02%, to 104,086.48 units.
* The Colombian peso strengthened 0.28% to 3,903.15 units per dollar and on the stock market the MSCI COLCAP stock index rose 1.9% to 1,323.34 points.
* The share of the largest producer of processed foods in Colombia, Nutresa, opened operations on Monday with an increase of 27.64% when it resumed negotiations on the stock market after being suspended due to the launch of a Public Offering of Acquisition (OPA) .
* The Peruvian currency, the sol, was down 0.27%, to 4,015 / 4,020 units per dollar. Meanwhile, the benchmark for the Lima Stock Exchange grew 0.05%, to 532.76 points.
* Argentine markets were closed on Monday for the commemoration of “National Sovereignty Day.”
(Report by Froilán Romero. Additional report by Nelson Bocanegra in Bogotá, Jorge Otaola and Walter Bianchi in Buenos Aires and Benjamín Mejías, Edited by Manuel Farías)