translated from Spanish: JPMorgan gives boost to the Government and invited to invest in Chilean shares

A bucket of cold water received the Government this morning after the Central Bank, in its national accounts report, noted that the country’s economic growth slowed in the third quarter for the first time beginning in 2017. Holders of finance and economy, Felipe Larraín and José Ramón Valente acknowledged the slowdown of GDP but both were optimistic and put the focus on positive investment figures.
The economic partnership of the Pinera Administration emphasized that the deceleration should not last since the investment continues to increase and the labor market shows some signs of recovery. “This economy is getting standing,” said Felipe Larraín this morning.
The investment is the battle of the Government and now received a strong boost from a U.S. Investment Bank.
According to JP Morgan Chase, the stock markets of Brazil and Chile could almost double the end of 2019. The Bank currently has a rating sobreponderada for both countries to see a rebound in growth and results of companies more attractive.
The rotation of the Brazilian macroeconomic policy “paves the way for the expansion of earnings, while advancing the agenda of reforms, despite its complicated implementation,”, said the strategist Emy Shayo in a November 19 report. In Chile, the recent performance of the market provides a good basis, according to Shayo. The country is one of the most advanced in the region and is expected to Sebastián Piñera’s government reforms to boost growth, he explained.
If materializes the bullish argument of JPMorgan, the stock index of reference of Brazil could climb to 123.900 (41% more than the current level) and the Chile IPSA would add 7,200 (+ 39%) by 2020. The base of the Bank scenario projected to both indicators 105.900 and 6,100, respectively.
In Brazil, Petroleo Brasileiro, Rumo, BR Malls Participacoes and Cia Brasileira de Distribuicao are elections that recommends JPMorgan, while Ambev, educational Kroton, Odontoprev and PagSeguro Digital are firms whose shares calls to avoid. PagSeguro fell to its initial public offering price for the first time on the day of Monday in New York. In Chile, the bank prefers to Santander Chile and suggests avoiding the national telecommunications company.
On the other hand, JPMorgan is neutral with respect to Mexican shares and has a rating infraponderada to Peru, Colombia and Argentina.

Original source in Spanish