Chile’s benchmark stock index fell to its lowest level in more than two years, after the worst civil conflict in a decade halted investment, forced the trade to close and drove away tourists.
The IPSA index dropped 3.3% at 1:48 p.m. local time, leading to its contraction since conflicts erupted, on October 18, to 12%, or about $15 billion in market value.
Wednesday’s fall was led by construction company Salfacorp SA, which fell 10%, followed by the financial firm Grupo Security SA, with a 7.2% decline, because investors concentrated on companies with a strong focus on the national economy.
The worst civil conflict in Chile since the country returned to democracy in 1990 has brought millions of people to the streets to support demands ranging from better pensions to a new constitution. However, protests on several occasions have turned violent; more than one in four supermarkets have been withdrawn. The government estimates that the cost is between US$2 billion and US$3 billion.
The construction and retail sectors have been hardest hit since 18 October; Ripley Corp SA, which owns department stores of the same name, have lost 28%.
