Share surge mystery
A 30% surge in the share prices of Chile's salmon producers in the past fortnight may have been mirrored by a 10% increase in the salmon price over the same period, but its other causes remain opaque.
Shares of those salmon producing companies listed on the Chilean stock exchange attracted considerable attention, due to the strong gains they experienced, according to the financial journal Pulso.
While the US market price has risen by about 10 per cent in recent weeks, up from US$ 3.5 per pound (US$ 7.72/kg), experts believe there must be other reasons behind the share surge - since 15th January Multiexport's value has risen 32%, Australis’ shares have increased by 29 per cent and Invermar’s by 24 per cent.
Another factor that might have influenced the situation, but to a lesser extent, is the potential regulatory agreement between the companies and the government, in order to modify the sanitary regulation, which would bring better opportunities to the salmon industry.
However, the market considers that the effect of regulation would be more limited, since the benefits are longer term.
"The regulatory issue is positive, but will have not have an impact for another year or so and is still not approved," sources told the journal.
As a result, the full range of reasons for these stock market improvements is still unknown.
