Stock prices of Chilean salmon farmers on the rise

Published on
March 14, 2016

The stock prices of several major players in the Chilean salmon farming industry are on the rise as investors react to the changing dynamics in the sector caused by the toxic algae bloom, which is blamed for the deaths of millions of fish in the country’s Region X.

More than 90,000 tons of farmed Atlantic salmon and 5,000 tons of Coho salmon had has been lost as a result of an algal bloom that began in late February and continues to taint the water of Region X, killing fish by asphyxiating them. As a result, the Chilean salmon industry has suffered the loss of 15 percent of its production, affecting every salmon farming company operating in Region X, according to Felipe Manterola, the general manager of SalmonChile, an industry group.

Companies affected include AquaChile, Blumar, Camanchaca, Cermaq, Australis Mar, Salmones Humboldt, Marine Farm, Marine Harvest Chile, Multiexport Foods and Ventisqueros.

Of those, only AquaChile, Australis Mar, Blumar, Camanchaca and Multiexport Foods are public companies with shares traded on the Santiago Stock Exchange. While the stock prices of all five companies are down between 8 and 50 percent so far in 2016, since 1 March, except for AquaChile, each has seen an upward surge in its price.

Shares of Blumar closed the day on 1 March at CLP 101 (USD 0.15, EUR 0.13) and closed the day on 14 March listed at CLP 125 (USD 0.18, EUR 0.16).

Camanchaca’s stock was selling for CLP 16.90 (USD 0.03, EUR 0.02) per share on 1 March and finished at CLP 20.97 (USD 0.04, EUR 0.03) on 14 March.

Australis Mar closed at CLP 13.40 (USD 0.02, EUR 0.02) on 1 March and finished at 18.14 (USD 0.03, EUR 0.02) on 14 March.

Multiexport Foods closed on 1 March at CLP 90.67 (USD 0.13, EUR 0.12) and was at CLP 116 (USD 0.17, EUR 0.15) by the end of the day on 14 March.

Only AquaChile’s stock has not spiked, as it opened on 1 March at CLP 217.92 (USD 0.32, EUR 0.29) and finished on 14 March at CLP 211 (USD 0.31, EUR 0.28).

Market analysts have theorized the higher stock prices are a result of less supply pushing up per-kilo prices of Chilean salmon.

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