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Cencosud Extends Gain on Plans to Shore Up Finances

By Nathan Gill
     Oct. 14 (Bloomberg) -- Cencosud SA, Chile's biggest
retailer, extended its steepest gain in four years in Santiago
trading after Banco Santander SA said a plan to raise capital may
reduce the company's financial ``uncertainty.''
     The shares rose 9.8 percent to 1,100 pesos after jumping 15
percent yesterday in the biggest gain since trading began in May
2004.
     Santiago-based Cencosud plans to sell 150 million new
shares, it said in an Oct. 10 statement. The controlling
shareholder will buy $120 million of the planned $200 million
share sale, Chairman Horst Paulmann said in an interview with El
Mercurio published Oct. 12.
     The retailer was reiterated at ``buy'' at Santander.
     The ``news is obviously a strong show of support for the
company,'' Raul Barros, analyst at FIT Research Corredores de
Bolsa SA, said by phone from Santiago today.
     Chile's peso, which last week tumbled to a four-year low
against the U.S. dollar, rose for a second day, signaling lower
costs for importers.

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