Chile's benchmark S&P IPSA index closed at 10,951 on Friday, driven by a sharp rally in financial stocks.
Banco de Chile (BCI) shares jumped 4%, providing the primary lift for the index as investors rotated into domestic banking equities ahead of the weekend.
The move marks a notable shift from earlier in the week, where mining and retail sectors had dominated trading activity.
The peso softened against the greenback, settling at 948.45 per dollar.
The currency's weakness suggests that despite the equity market's positive close, foreign investors remain cautious about near-term liquidity flows into Chilean assets.
The divergence between the local currency and the equity index highlights the selective nature of current buying interest, which appears focused on domestic earnings potential rather than broad-based foreign capital inflows.