LATAM SHARES sank 44%

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The Chilean airline suffered the impact of restrictions on international flights that are being imposed in many countries in the region

The Santiago Stock Exchange closed this Wednesday with a fall of 12.09%, standing at 2,876 points, a price not seen in 10 years, dragged in part by the collapse suffered by the Latam airline, which fell 44.01%.

The stock market crash occurred on a day in which the country’s president, Sebastián Piñera, decreed a constitutional state of emergency due to a catastrophe as a measure to deal with the situation of the coronavirus pandemic in Chile, which has already accounted for 238 infections.

The Selective Stock Price Index (IPSA), the main stock market index in Chile, continues the black week that started this Monday, when it fell 14.11% and closed at 3,232.4 points, its worst result in more than 30 years.

Latam’s title, which is suffering severely from the coronavirus crisis and reduced its operations by 70% after different countries in the region announced the closure of their borders, fell to 1,551 pesos (1.82 dollars).

The state of constitutional emergency due to catastrophe will take effect at 00:00 on Thursday and will allow the authorities, among other things, to establish quarantines and curfews, ensure the distribution of basic goods and services, and order the formation of food reserves. and other goods, reason why the commerce was suffered.

In fact, the Ministry of Economy, together with the National Chamber of Commerce (CNC) and the Chamber of Shopping Centers, agreed to close the shopping malls throughout the country starting this Thursday, with the exception of supermarkets, pharmacies, banks and medical centers inside.

Some districts of the Chilean capital have also already determined the closure of all commercial and leisure or recreation establishments.

Thus, the shares of some of the large companies in the Chilean trade, such as Falabella (-10.70%), Parque Arauco (-12.74%) and Cencosud (-15.49%) registered sharp falls this day.

The only action that rose this day on the Stock Market was that of Clínica Las Condes, which rose 0.57% to a value of 28,538 pesos (about $ 34).

The foreign exchange market also registered a new historical drop in the Chilean peso, which stood at 868 units per dollar.

This fall occurs in a context in which the price of copper, of which Chile is the world’s largest producer, fell 6.62% on the London Metal Exchange and reached $ 2.20 per pound.

Flights to repatriate passengers

On the other hand, Latam will begin to implement special flights to bring back passengers who have been stranded without being able to return to their countries due to the coronavirus pandemic, including those who traveled from Argentina..

“Due to the closing of borders in some countries where the company operates, LATAM Airlines Group S.A. has launched a program to bring back passengers who are prevented from returning to their homes,” the company said in a statement.

He adds that “to date, there are already more than 500 people who have returned, thanks to a coordinated effort with the authorities of different countries who have granted permits to land and take off these special flights.”

“We are doing everything possible to help passengers, who have been unable to return to their homes, to do so as soon as possible. To do this, we will have special flights that we will communicate in a timely manner,” said Roberto Alvo, commercial vice president LATAM Airlines Group.

They also indicated that “passengers are being progressively contacted to coordinate their returns”, and that “in the case of passengers who have tickets on other airlines, they may request these companies to have their tickets endorsed by LATAM, which will transport them to the extent that there is availability of seats.”

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