Bloomberg News

Provida Gains After BCI Adds to Favorite Portfolio

October 15, 2010

AFP Provida SA, Chile’s largest pension fund manager by assets, gained after BCI Corredor de Bolsa SA named it one of its favorite stocks, citing its “defensive” profile.

Provida rose 1.8 percent to 2,260.6 pesos at 2:52 p.m. New York time. The IPSA index fell 0.8 percent to 4,735.06.

BCI included Provida in its portfolio of five favorite stocks with a 20 percent weighting to replace Soc. Quimica y Minera de Chile SA, Chile’s largest fertilizer producer, according to an e-mailed note to clients.

“Provida has an attractive cash generation which has allowed it to produce historically high dividend yields,” the report said. “In a scenario in which the Ipsa index doesn’t seem to hold major upside for the rest of the year, we favor including Provida in our portfolio.”

BCI also increased the weighting for pulp exporter Empresas Copec SA (COPEC) to 25 percent from 20 percent and maintained retailer Cencosud SA (CENCOSUD), power generator Empresa Nacional de Electricidad SA at 20 percent each, and Lan Airlines SA (LAN) at 15 percent.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net.

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net.


Ebola Rising
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus