Chile stocks .IPSA were up 0.3 percent on Tuesday,
boosted by strong industrial output data and the prospects of a
merger in the local banking sector.
Chile's industrial production rose 6.9 percent in August
compared with the same month last year, well above market
expectations for a 4.3 percent increase, the government said on
Tuesday. For more, see [ID:nN28121779]
"With better-than-expected economic indicators, you can
expect pro-cyclical sectors to keep charging," said Sebastian
Rauff, a trader with the Scotiabank brokerage in Santiago.
Shares in Chile's fifth-largest bank, Corpbanca COB.SN,
jumped after a local business newspaper report of informal
merger talks with state-run Banco do Brasil (BBAS3.SA).
Corpbanca's stock was up 4.3 percent midday Tuesday after
rising 5.4 percent on Monday.
"Corpbanca is one of those companies watched closely by
investors and thanks to this news the stock is going to be much
more volatile," said Francisco Hazbun, a trader with the Tanner
brokerage in Santiago.