One month before the presidential elections take place, the market is projecting the eventual effects of the elections on the stock market and the Chilean peso.
An additional ingredient to the analysis of stock brokers is the advance of the
According to analysts, a Kast government would allow for greater economic stability, while one led by Boric would bring greater fear among local and foreign investors.
“Unsustainable and less responsible economic policies would lead to further sharp adjustments in inflation and interest rates, among other impacts. The elections at the end of the year and the consequent public policies that will be implemented are a hinge moment for the shaping of expectations,” highlighted analysts at Bci Estudios in a report.
Impact on the stock market
According to Nevasa’s market strategist,
In the event that a leftist candidate is elected, he states that “it depends on who is elected, since Boric’s program is more extreme than Provoste’s, so if the former is elected in the first round, he would expect a negative reaction in the market, since his program does not offer incentives to generate greater growth, but rather would endanger the country’s long-term growth”.
He says that the S&P IPSA could fall below 4,000 points, driven by sectors dependent on local growth such as basic services, banks and retail. The index has accumulated an annual decline of 3.28%, aiming to close its fourth year in the red.
“Certain analysts have pointed out that a leftist government could affect country risk because it would lead
Dollar on the rise
As for the peso, yesterday it weakened again against the dollar, which was at
“We should see volatility as the elections approach and above all a greater perception of risk, which could take the dollar close to new highs in 2021,” predicts the general manager of Renta4,
Meanwhile, Banchile Inversiones corrected its projections upwards as a result of local uncertainty, going from