Skip to main content

Santander Chile Extends Rally as Credit Concern Eases

By Nathan Gill
     Oct. 14 (Bloomberg) -- Banco Santander Chile, the country's
biggest lender, extended its biggest gain in a decade in Santiago
as analysts recommended buying the shares on valuation and as the
U.S. bank bailout plan eased credit concerns.
     Santander gained 12 percent to 21 pesos, after surging 14
percent yesterday in the steepest rally since shares started
trading in May 1997.
    ``The only reason the bank is going up so much is that it was
too discounted,'' Javier Pizarro, an analyst at Larrain Vial SA,
said by phone from Santiago today. ``It's a good buy and a good
     Banco Santander's price-to-earnings ratio fell to 10 at the
end of last week from a multiple of 17 a year ago. Financial
stocks also rallied today after European and U.S. governments
pledged to buy stakes in banks to halt a credit freeze.
     The London interbank offered rate, or Libor, that banks
charge each other for three-month dollar loans slid 12 basis
points to 4.64 percent, the biggest drop since March 17,
according to the British Bankers' Association. It was at 4.82
percent on Oct. 10, the highest level since December.
     Rival Banco de Chile climbed 7.5 percent to 32.5 pesos,
extending yesterday's 16 percent gain.


Popular posts from this blog

Bailout Risk Grows for Ecuador After Worst Earthquake in Decades

By Nathan Gill April 19, 2016 (Bloomberg) -- Before a 7.8-magnitude earthquake struck Ecuador on Saturday, the South American nation’s finances were already in tatters as the government struggled to meet payments to municipal authorities, oil companies and even cancer hospitals. Cut off from global bond markets, President Rafael Correa must now find enough money to rehouse thousands.
As volunteers continue to rescue victims from the rubble of collapsed homes and buildings on Ecuador’s Pacific coast, doubts are growing about the country’s ability to pay for the reconstruction. The nation is already in its worst recession since the financial system collapsed in the late 1990s, and international reserves are at their lowest levels in almost seven years.
Click hereto read the full story on Bloomberg News.

Ecuador Quake Death Toll Rises as World Leaders Offer Support

By Benjamin Bain and Nathan Gill April 16, 2016 (Bloomberg) -- World leaders from the Vatican to Washington offered support to Ecuador as casualties mounted following one of the strongest earthquakes to strike the South American country in decades.
By Sunday evening, the number of dead had climbed to at least 246, from 77 earlier in the day. At least 2,527 were injured, the government said. President Rafael Correa flew to the epicenter in hard-hit Manabi province after cutting short a trip to Rome, for a conference at the Vatican, in the aftermath of the 7.8-magnitude earthquake.
Click here to read the full story on Bloomberg News.

77-Year-Old Wall Street Favorite to Face Fujimori in Peru Runoff

By Nathan Gill and John Quigley April 12, 2016 (Bloomberg) -- The victory by Pedro Pablo Kuczynski, a former finance minister, for second place in Sunday’s Peruvian president elections sets up a showdown between two business-friendly candidates, part of a regional backlash against left-wing politicians.
Kuczynski, a 77-year-old Oxford-trained political economist who’s spent more than 50 years championing debt control and free trade, won 21 percent of vote with 96 percent of the ballots counted, according to the electoral office. He will face Keiko Fujimori, who won 39.8 percent, in a second-round vote on June 5.
Click here to read the full story on Bloomberg News.