Mining Stocks Tumble After Chile Election Results

December 21, 2021 07:30

Yesterday, continued concerns surrounding the rapid spread of Omicron weighed on the global markets, with most major stock indices falling as equities bore the brunt of ongoing uncertainty.

Amongst the session’s biggest casualties were several mining companies, including UK based copper producer Antofagasta and the world’s largest lithium producer, Chilean company Sociedad Química y Minera (SQM).

Both Antofagasta and SQM operate in Chile, and both fell by 5.51% and 15.26% respectively yesterday. These declines followed Sunday’s election results, in which left-wing candidate Gabriel Boric was elected to become Chile’s youngest ever president.

The president-elect’s proposed policies include raising taxes on mining companies and restricting projects which damage the environment. If enacted, both these policies could make life difficult for mining companies operating in Chile in the future, hence the market’s adverse reaction.

Furthermore, Boric has also stated his desire to create a state-owned national lithium corporation to take charge of developing the country’s lithium industry, which could pose a threat to SQM.

Further volatility is to be expected in both of these companies over the coming sessions, as the market awaits news regarding the president-elect’s cabinet choices. Depending on the signal this sends to the market regarding how the country will be governed going forward, we could see further declines in both of these mining stocks.

Depicted: Admirals MetaTrader 5 - Antofagasta Daily Chart. Date Range: 23 April 2021 - 20 December 2021. Date Captured: 21 December 2021. Past performance is not a reliable indicator of future results.

 

Antofagasta Share Price Five-Year Evolution

Depicted: Admirals MetaTrader 5 - Antofagasta Weekly Chart. Date Range: 28 June 2015 - 20 December 2021. Date Captured: 21 December 2021. Past performance is not a reliable indicator of future results.

 

Depicted: Admirals MetaTrader 5 - Sociedad Quimica y Minera de Chile Daily Chart. Date Range: 20 April 2021 - 20 December 2021. Date Captured: 21 December 2021. Past performance is not a reliable indicator of future results.

 

Sociedad Quimica y Minera Share Price Five-Year Evolution

Depicted: Admirals MetaTrader 5 - Sociedad Quimica y Minera de Chile Weekly Chart. Date Range: 7 June 2015 - 20 December 2021. Date Captured: 21 December 2021. Past performance is not a reliable indicator of future results.

 

Trade Stock CFDs with Admirals

With a Trade.MT5 account from Admirals, you can trade Contracts for Difference (CFDs) on Antofagasta, SQM and over 3,000 other stocks from 15 of the world’s largest stock exchanges. CFDs allow traders to attempt to profit from both rising and falling share prices, whilst also benefitting from the use of leverage. Click the banner below to open an account today:

 

Stock and ETF CFDs

Trade CFDs on Stocks and ETFs with Admirals

START TRADING

 

INFORMATION ABOUT ANALYTICAL MATERIALS:  

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:  

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
  3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
  4. The Analysis is prepared by an independent analyst Roberto Rivero, Freelance Contributor (hereinafter "Author") based on personal estimations.
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
  6. Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
Roberto Rivero
Roberto Rivero Financial Writer, Admirals, London

Roberto spent 11 years designing trading and decision-making systems for traders and fund managers and a further 13 years at S&P, working with professional investors. He has a BSc in Economics and an MBA and has been an active investor since the mid-1990s