The weight and stock market of the Chile fell on Monday after the landslide victory of leftist Gabriel Boric in the Chilean presidential elections.
The elections were the most polarized in the country in three decades, since the fall of the military dictatorship. Boric won with 55.85% of the vote, against ultra-conservative José Antonio Kast, who received 44.13%.
The benchmark of the market spot fell 7.27%, to 4,045.33 points at 9:40 am (Eastern time), while the peso yielded 2.89%, amidst much volatility, which caused it to drop 3.67% earlier.
“Among the guidelines of Boric’s program that most concern investors are the increase in the tax burden, the increase in social spending and the reform of the pension system,” said Mercados G in a statement.
BCA Research said in a note to clients that it expects a sizeable sale of stocks and currency after Boric’s victory.
“As soon as the dust settles, a buying opportunity in Chile may arise. Political volatility will be contained and the Congress will reject extreme policies,” the company said.
Source From: Moneytimes
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