04 November 2008

Socovesa Rises on $1.15 Billion Chilean Aid Program (Update1)

By Nathan Gill
     Nov. 4 (Bloomberg) -- Socovesa SA, Chile's biggest homebuilder, rose the most in three weeks after the government announced plans to spend $1.15 billion to help the economy withstand the global financial crisis.
     Shares advanced 5.7 percent to close at 92.99 pesos, the biggest gain since Oct. 13.
     Chile's President Michelle Bachelet announced a series of measures today to bolster housing and access to credit for small and medium-size companies. The measures follow $850 million of funding announced last month.
     ``This is good news for a sector that has been hit very hard lately,'' said Alvaro Pipino, the head of research at IM Trust. ``The president's proposal to subsidize housing helps Socovesa because the majority of their houses are within the price range of the subsidies.''
     Socovesa had fallen 59 percent this year through yesterday, while the benchmark Ipsa index slipped 16 percent.