There was a large drop in the Chile Small Cap Index Wednesday night that resulted in the index opening down 11% Thursday morning.
We haven't yet been able to identify a reason for this move and what make it even more odd is that it appears to have happened in a vacuum. Not one of the other Chilean even came close to making a similar move. Here's a chart showing the % change of the 5 Chilean equity indexes we track going back to the beginning of the year:
The US Dollar / Chilean Peso cross was relatively calm during that period as well, so our first instinct is to believe that this was a bad print. However a few days have passed and Bloomberg still has not shown a correction for this index.
Another possibility is that the composition of the index was altered but we haven't been able to locate anything to corroborate this. So at this point without any evidence indicating otherwise, we are inclined to believe that the data is valid. As a result of this move the Chile Small Cap Index is now the worst performing equity index in the month of March:
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