Chile stocks sink 1.7 pct on global growth fears

* Bourse tracks global losses on Europe woes

* Commodity, bank shares, utilities lead losses
(Updates with trader comment background)

SANTIAGO, May 20 (BestGrowthStock) – Chile’s blue chip IPSA index
(.IPSA: ) fell 1.7 percent on Thursday, tracking losses on global
markets amid growing fears that Europe’s debt woes will slow
the world’s economic recovery, traders said.

The IPSA fell to 3,784.30 points in early afternoon trade
compared to Wednesday’s close of 3,849.75 points.

Global markets have been hammered by fears that debt woes
in Greece could spread through Europe and brake the global
recovery from financial crisis, while Germany’s move to ban
some short-selling sparked fears of tighter regulations
elsewhere. [ID:nLDE64J139] and [ID:nLDE64J0BN]

“We are aligned with what is happening in international
markets … The measure taken by Germany has generated a lot of
speculation about what the rest of Europe will do,” said
Francisco Hazbun, a trader at the Tanner brokerage.

The Dow Jones industrial average (.DJI: ) was down around 2.5
percent, while Brazil’s Bovespa (.BVSP: ) was off 2.2 percent

Commodity shares were among the hardest-hit, with Chilean
industrial conglomerate and bourse heavyweight Copec (COP.SN: ),
one of the world’s leading wood pulp exporters, down 1.8
percent at 8,150 pesos a share.

Shares in fertilizer, lithium and iodine producer Soquimich
(SQM_pb.SN: ) were down 3.1 percent at 17,750 pesos each.

Leading bank Santander Chile (STG.SN: ) was down 2.4 percent
at 31.7 pesos each, while No.2 bank Banco de Chile (CHI.SN: ) was
also off 2.4 percent at 52.4 pesos each. Electrical utilities
also fell.

Investing Analysis

(Reporting by Felipe Iturrieta. Writing by Simon Gardner;
Editing by Diane Craft)

Chile stocks sink 1.7 pct on global growth fears