November 20, 2017 / 9:10 PM / a year ago

EMERGING MARKETS-Chile stocks drop nearly 6 pct after presidential vote

 (Updates with closing prices, adds quote)
    Nov 20 (Reuters) - Chile's peso currency and benchmark IPSA
stock index fell on Monday after market-friendly presidential
candidate Sebastian Pinera garnered less support than expected
in the country's election. 
    Chileans voted for a successor to outgoing center-left
President Michelle Bachelet on Sunday. While billionaire former
president Pinera will move on to a Dec. 17 runoff against
government-backed candidate Alejandro Guillier, the race is now
seen as tighter than previously forecast.
     The IPSA stock index closed down 5.86 percent at
5076.02 points, its sharpest single-session fall since 2011. The
index hit its lowest level since August, but is still up 22
percent this year on rising copper prices and expectations
Pinera will win.
    The peso suffered its sharpest depreciation against
the dollar since 2013, slipping 1.68 percent to 637.40 per
    The market moves were a "reaction to the risk that Pinera
might not win the second round," said Hugo Rubio, head of
trading at brokerage BTG Pactual Chile. 
    Pinera's underperformance led to expectations of a tight
second round, particularly if turnout is high, though Guillier
must unite a fractured center-left in order to win. 
    Both candidates would keep in place the top copper
exporter's longstanding free-market model, though Pinera has
promised investor-friendly policies to turbocharge growth.
    Mexico's stock market as well as stock and currency markets
in Brazil and Argentina were closed on Monday due to national
    Key Latin American stock indexes and currencies at 1500 GMT.
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets           1137,25      0,07     31,89
 MSCI LatAm                      2765,27     -0,38     18,14
 Chile IPSA                      5076,02     -5.86     22,27
 Chile IGPA                     25604,57     -5,66     23,49
 Colombia IGBC                  10794,35     -0.21      6,85
 Currencies                                daily %     YTD %
                                            change    change
 Mexico peso                      19,002     -0,37      8,40
 Chile peso                       637,40     -1,68      4,97
 Colombia peso                   3014,40     -0,57     -0,43
 Peru sol                          3,238       .09      3,49

 (Reporting by Luc Cohen and Felipe Iturrieta; Editing by
Meredith Mazzilli and Rosalba O'Brien)
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