SANTIAGO, Dec 18 (Reuters) - Chile’s IPSA stock index rose more than 6 percent, hitting an all-time high on Monday, following a resounding win by conservative billionaire Sebastian Pinera in Sunday’s presidential election.
Pinera, the investor favorite, has promised to cut corporate taxes and red tape and boost growth in the world’s top copper producer, and the peso currency closed 2.38 percent stronger at a two-month high.
Gains on the index were led by Chilean pulpmaker Empresas Copec SA, carrier Latam Airlines and retailer Cencosud. Lithium producer SQM rose nearly 5 percent in Santiago and 8.4 percent in New York.
Chile’s IPSA had posted its highest weekly gain in eight years in the week ahead of the election, as the price of copper, the country’s main export, rose, alongside expectations of a Pinera win.
Smaller companies not traded on the IPSA also rose in Chile, like engineering company Besalco SA, which rose 21.2 percent.
“The market reaction reflects a commitment for Chile to recover leadership and dynamism in economic growth,” Pinera told journalists in Santiago. (Reporting by Antonio De La Jara, Dave Sherwood and Felipe Iturrieta; Writing by Caroline Stauffer; Editing by Chizu Nomiyama and Phil Berlowitz)