Santiago, March 7, 2026, 06:30 (GMT-3)
- Chile’s S&P CLX IPSA dropped roughly 5.2% for the week, with most of the damage coming from steep declines earlier on.
- Banks and consumer stocks remained pressured, while a handful of defensives and SQM helped steady things late in the week.
- Cooling inflation offered some relief, though oil-fueled currency pressure is muddying the picture for rates.
Chile’s main index on the Bolsa de Comercio de Santiago dropped roughly 5.2% for the week. The selloff was steep in the early sessions, but the market managed a partial rebound by Friday’s finish.
The timing is crucial. In Santiago, traders are trying to figure out if a global oil shock will spill over into local inflation through the currency, right as markets had begun to anticipate lower rates and more stable prices.
Chile’s February CPI basically went nowhere, staying unchanged from the previous month, while annual inflation eased to 2.4%, according to the national statistics agency on Friday.
On Friday, the S&P CLX IPSA closed at 10,312.05, edging up 0.14%. That small gain followed a sharp 3.02% drop on Monday and another 2.85% slide Tuesday, when the benchmark touched an intraday low at 9,931.28. Despite the rocky week, the index is still ahead about 39.8% year-over-year, though it’s slipped around 8% since Feb. 9.
Stocks ended Friday with a split performance. Plaza tacked on 2.60%, Banco de Chile advanced 1.57%, and Soquimich B edged up 1.55%. Shares of Viña Concha y Toro gave up 2.59%. Parque Arauco was down 2.39%, and Engie Energia Chile lost 2.15%.
Currency markets took the lead this week. The Bloomberg Dollar Spot Index climbed 1.34%, while USD/CLP hovered near 911.62 on Friday. “The market is looking more beyond the weak data,” Bank of America’s Alex Cohen noted, pointing to oil and uncertainty as key factors. ING’s Chris Turner highlighted energy prices as “the main driver” for the dollar’s gains. Bloomberg Línea
The risk-off sentiment didn’t stop at Chile. Emerging market equity funds posted steep outflows and losses this week as the Iran conflict spooked investors, according to Reuters, with LSEG Lipper data showing Chile among the top decliners.
Chile’s central bank is eyeing March 24 for its next monetary policy meeting, as laid out in its 2026 policy calendar.
S&P Dow Jones Indices says the IPSA tracks the biggest and most actively traded stocks listed on the Santiago Exchange.
The outlook isn’t straightforward in the short run. Oil sticking at high levels, or any escalation in the conflict, puts pressure on the peso, which could mean more imported inflation and dim hopes for rate cuts — those are usually talked about in basis points, with one basis point equal to 0.01 percentage point. That scenario leaves Santiago’s most rate-sensitive stocks in a vulnerable spot.
