Chile’s stock market ranked fourth globally, with returns totaling 56% in Chilean pesos.
Only Ghana’s stock market outperformed Chile, posting a gain of 79%, followed by South Korea and Zambia. File Photo by Claudio Reyes
Jan. 15 (UPI) — Chile’s stock market delivered its strongest performance in 32 years in 2025, emerging as the best-performing exchange in Latin America and ranking fourth globally, with returns totaling 56% in Chilean pesos.
Only Ghana’s stock market outperformed Chile, posting a gain of 79%, followed by South Korea and Zambia.
Santiago’s main benchmark, the Selective Stock Price Index, or IPSA, surpassed historic levels and closed the year at 10,481.47 points, marking its best annual performance since 1993.
Trading volumes also rose sharply, with the value of shares traded climbing 67.9% to a total of $50.87 billion.
Of the 30 companies listed on the index, 28 recorded positive returns in local currency, while all companies posted gains when measured in U.S. dollars.
The most valuable company and the one with the highest return was Sociedad Química y Minera de Chile, the world’s leading nonmetallic mining company in lithium and iodine production. The firm posted a return of 74.32%.
Economic analyst Jorge Berríos, academic director of the Finance Diploma Program at the Faculty of Economics and Business of the University of Chile, told UPI that the Chilean index posted an outstanding result consistent with the country’s macroeconomic normalization, which is projecting growth above 2%.
“Inflation has been trending downward and there have been cuts to the monetary policy rate, which ultimately makes investment portfolios more attractive,” Berríos said. “The banking sector is a key driver of the IPSA. The normalization of credit risks has made it particularly appealing. Banking continues to be a sector with a high rate of return compared to other markets.”
He also highlighted momentum in commodities, driven by elevated copper prices.
“There are expectations tied to advancing the energy transition. There is structural demand for electricity, which boosts mining activity and supports high commodity prices,” Berríos said.
Another factor cited by analysts was a reduction in political uncertainty.
Alex Fleiderman, head of Equity Sales at BTG Pactual, said the main driver of the market’s performance was strategic asset allocation ahead of the presidential election in November 2025.
“Polls consistently pointed to the arrival of a pro-market, pro-investment government,” Fleiderman said. “This scenario was confirmed in the December runoff with the election of right-wing candidate José Antonio Kast, whose economic policy expectations for the 2026-to-2030 period underpin market optimism.”
Fleiderman added that Chile’s economy proved resilient, exceeding initial GDP growth forecasts of 2.0% to reach between 2.3% and 2.4%.
“This upward revision was driven mainly by a recovery in investment during the second half of the fiscal year,” he said.
He also pointed to the approval of a tax reform aimed at increasing savings in the private pension system and a rise in business confidence.
“These factors combined strengthened corporate profitability,” Fleiderman said. “They shape a constructive outlook for 2026 and support a positive view of the market over the next four years under the Kast administration.”
Berríos agreed, noting that positive expectations are emerging in capital markets.
“There is a decline in country risk, greater stability and no visible changes that would affect the foundations of the country’s financial system,” he said. “That environment is encouraging stronger capital flows and increased investment.”
Together, he added, these conditions have helped produce “an exceptionally strong IPSA.”
