Chilean Stocks Post World’s Biggest Drop as Quake Closes Roads

Chile stocks fell the most in almost a month, the biggest drop among the world’s 50 largest markets, after an 8.8-magnitude earthquake killed hundreds, severed the nation’s main highway and damaged 1.5 million homes.

Empresa Nacional de Electricidad SA, the nation’s biggest power generator, and Lan Airlines SA, the country’s largest carrier, dropped following electricity outages and airport closures. Salfacorp SA, Chile’s biggest building company, jumped the most in five months on speculation it will benefit from increased business as the nation recovers.

The Ipsa Index dropped 1.2 percent to 3,782.04, the biggest decline since Feb. 5, following the country’s biggest earthquake since 1960. Chile’s peso pared a retreat of as much as 1 percent in Santiago, losing less than 0.1 percent to 524.70 per dollar, on speculation the government will repatriate overseas savings to fund reconstruction. (more)