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Keywords: *TOP NEWS* Latin America
(Adds quote, closing stock figures)
SANTIAGO, May 19 (Reuters) - Chilean stock indexes closed higher for a fourth consecutive session on Monday, as rainfall buoyed investor hopes that hydroelectric energy supplies would help soften the current energy shortage.
The peso slipped against the dollar as the central bank continued its daily purchase of greenbacks.
The all-market IGPA index <.IGPA> gained 0.84 percent to 13,997.42 points, while the blue chip IPSA index <.IPSA> advanced 1.05 percent to 2,995.05 points, preliminary closing figures showed.
"The market is rising mainly on Soquimich and the electricity sector. Investors saw that electric sector multiples were way below historic levels," said Rodrigo Martin, head of research with the Banchile brokerage. "News of heavy rains in the south probably generated buying too."
Short energy supplies have taken a bite out of Chile's economic growth potential, as drastic cuts in natural gas from Argentina and lower hydroelectric reservoir levels caused by scant rainfall have caused costs to soar
"I think it's still too early to assume we're out of the woods, because one day of rain is not going to solve the problem."
Endesa Spain's <ELE.MC> regional investment arm Enersis <ENE.SN> rose 1.6 percent while generating subsidiary Endesa Chile <END.SN> advanced 2.58 percent. Endesa Chile is heavily hydro-dependent and the two companies together are weighted at about 15 percent of the IPSA.
Both stocks surged on Friday as investors snapped up ADR shares after Enersis was recommended on a televised U.S. investment show.
Locally owned generator Colbun <COL.SN> also rose 2.35 percent, to 89 pesos a share.
Blue-chip percentage gains were led by fertilizer exporter SQM <SQM_pb.SN> <SQM.N>, with a surge of 6.8 percent.
Giant regional retailers also helped pull indexes higher, as Falabella <FAL.SN> gained 1.56 percent and Cencosud <CEN.SN> rose 1.23 percent.
Of Chile's 40 blue-chip stocks, 24 closed higher, 13 fell and three were unchanged.
The Chilean peso <CHILJ> <CLP=CL> slipped 0.19 percent to close at 467.10/467.40 per dollar compared with Friday's close at 466.20/467.50.
The central bank on Monday continued with its daily purchase of $50 million on the currency exchange as part of an $8 billion intervention to curb the strength of the peso, which has gained 6.6 percent against the greenback this year. (Reporting by Lisa Yulkowski; Editing by Dan Grebler) ((lisa.yulkowski@reuters.com; +56-2-370-4290)) Keywords: MARKETS CHILE/
SANTIAGO, May 19 (Reuters) - Chilean stock indexes rose for a fourth consecutive session in afternoon trade on Monday, boosted by electric utilities as a light seasonal rainfall buoyed investor hopes for hydroelectric energy supplies, which would help the industrial sector.
The peso slipped against the dollar as the central bank continued its daily purchase of greenbacks.
The all-market IGPA index <.IGPA> gained 0.64 percent to 13,969 points, while the blue chip IPSA index <.IPSA> advanced 0.79 percent to 2,987 points.
"It's the typical correlation between the electric sector and rainfall. Even though it's not much, it's something," said Marcelo Ogaz, an analyst with the BICE brokerage.
Short energy supplies have taken a bite out of Chile's economic growth potential, as drastic cuts in natural gas from Argentina and lower hydroelectric reservoir levels caused by scant rainfall have caused costs to soar.
"An outlook for increased supplies of hydroelectric energy are helping industrial stocks and would help the economy overall as well," Ogaz said.
Endesa Spain's <ELE.MC> regional investment arm Enersis <ENE.SN> jumped 2.64 percent while generating subsidiary Endesa Chile <END.SN> advanced 2.58 percent. Endesa Chile is heavily hydro-dependent and the two companies together are weighted at about 15 percent of the IPSA.
Both stocks surged on Friday as investors snapped up ADR shares after Enersis was recommended on a televised U.S. investment show.
Blue-chip percentage gains were led by fertilizer exporter SQM <SQM_pb.SN>, up 5.43 percent.
Giant regional retailers also helped pull indexes higher, as Falabella <FAL.SN> gained 1.56 percent and Cencosud <CEN.SN> rose 0.97 percent.
Of Chile's 40 blue-chip stocks, 26 traded higher in afternoon trade, 8 fell and six were unchanged.
The Chilean peso <CHILJ> <CLP=CL> slipped 0.19 percent to close at 467.10/467.40 per dollar compared with Friday's close at 466.20/467.50.
The central bank on Monday continued with its daily purchase of $50 million on the currency exchange as part of an $8 billion intervention to curb the strength of the peso, which has gained some 6.6 percent against the greenback this year. (Reporting by Manuel Farias, Writing by Lisa Yulkowski; Editing by Leslie Adler) ((lisa.yulkowski@reuters.com; +56-2-370-4290)) Keywords: MARKETS CHILE/
(Updates with fresh quotes, details throughout)
By Pav Jordan
CALAMA, Chile, May 19 (Reuters) - Chile's Gaby copper mine, owned by world No. 1 copper miner Codelco, will produce around 80,000 tonnes of the metal in 2008, the firm's chief executive said on Monday.
Codelco Chief Executive Jose Pablo Arellano said during a visit to the mine that Gaby would be ramped up to full capacity of about 150,000 tonnes per year of copper in August.
"This year we will produce around or even a little more than 80,000 tonnes, given we will only be in production for half a year," he told reporters.
He said output at the $1.024 billion mine will be expanded further to 165,000 tonnes per year in a second phase.
Codelco is in an expansion phase meant to help offset a slide in output at the mining giant in recent years amid falling grades at aging mines.
The Gaby mine is currently the only greenfield expansion project at Codelco, which is in the middle of an ambitious expansion across its five divisions.
Codelco's production came in at 1.583 million tonnes in 2007, not including its stake in a joint venture mine with Freeport-McMoRan Copper & Gold Inc <FCX.N>, El Abra.
Output has been curtailed this year by a subcontractors' strike at three divisions and the Gaby start-up is about two months behind schedule.
"We expect to recover lost production," said Gaby plant supervisor Gerardo Morales.
Codelco's overall output is expected to hit the 1.7 million tonnes per year level in 2009 and 2010, without its stake in El Abra.
Codelco is also planning a major expansion at its Andina division and a conversion of its largest mine, Chuquicamata, into an underground operation from an open-pit operation.
At Radomiro Tomic, part of the Codelco Norte division together with Chuquicamata, Codelco is developing a new project to exploit sulphides. (Editing by Simon Gardner and Marguerita Choy) ((simon.gardner@thomsonreuters.com; + 562 370-4250; Reuters Messaging: simon.gardner.reuters.com@reuters.net))
Keywords: CHILE CODELCO/GABY
CALAMA, Chile, May 19 (Reuters) - Chile's Gaby copper mine, owned by world No. 1 copper miner Codelco, will produce around 80,000 tonnes of the metal in 2008, the firm's chief executive said on Monday.
Codelco Chief Executive Jose Pablo Arellano said during a visit to the mine that Gaby would be ramped up to full capacity of about 150,000 tonnes per year of copper in August.
"This year we will produce around or even a little more than 80,000 tonnes, given we will only be in production for half a year," he told reporters.
He said output at the $1.024 billion mine will be expanded further to 165,000 tonnes/year in a second phase. (Reporting by Pav Jordan, Editing by Simon Gardner) ((simon.gardner@thomsonreuters.com; + 562 370-4250; Reuters Messaging: simon.gardner.reuters.com@reuters.net))
Keywords: CHILE CODELCO/GABY
Next: *TOP NEWS* Latin America