Chile's benchmark S&P IPSA index fell 0.77% on Tuesday, marking a reversal of the positive momentum that had carried the gauge higher in late June.
The decline was primarily driven by weakness in shares of SQM, the country's leading lithium producer, which weighed heavily on the mining-dominated index.
53% to close at 10,763, extending a winning streak fueled by rebounding copper prices.
The local currency offered a counterpoint to the equity sell-off, with the Chilean peso strengthening to 930.9 per US dollar.
This firming suggests that despite the equity headwinds, broader macroeconomic sentiment or capital flows into the currency remain relatively stable.
The session's losses stand in contrast to the index's performance earlier in the month.
On June 26, the IPSA had climbed 0.53% to close at 10,763, extending a winning streak fueled by rebounding copper prices. By June 30, the index had secured a third consecutive session of gains, closing at 10,840 after rising 0.71% and breaking through a key technical resistance level.
However, copper prices provided little support on Tuesday, failing to offset the pressure from the lithium sector.