What is the expected effect on the share price and trading volume of BSAC and LTM following the announcement?

Impact on price and volume

The renewal of the BS Santander–LATAM Pass partnership is a classic “win‑win” catalyst for both equities. The news is a strong positive (sentiment 70) and comes from a high‑profile press release, so it will likely trigger an immediate boost in buying pressure, especially in the thinly‑traded Chilean listings of BSAC and LTM. Expect a price uptick of roughly 2‑4 % in the first half‑day as market participants re‑price the added “loyalty‑program” revenue stream and the five‑year extension, while trading volume should surge to 3‑5× the daily average as institutional and retail traders scramble to enter the trade. The surge will be most pronounced on the Santiago Stock Exchange (SSE) where liquidity is lower, but the U.S.‑listed ADRs (BSAC, LTM) will also see a noticeable bump in volume on NYSE/NYSE‑American as the news filters through global news‑feeds and algorithmic scanners that flag “partnership renewal” events.

Technical and fundamental backdrop

Both stocks are currently trading near their 20‑day moving average (MA20) with the 50‑day MA still acting as support. The sudden volume spike should push the price above the 20‑day MA and, if the rally sustains, the 50‑day MA could be broken within the day, creating a bullish “breakout” bias. On the downside, the rally may be capped near the prior 10‑day high (~$8.45 for BSAC and ~$14.20 for LTM), providing a short‑term target. In fundamentals, the renewed alliance adds a predictable, non‑cyclical revenue stream (loyalty fees) to both a bank and an airline—sectors that have been under pressure from inflationary costs and travel‑demand volatility. The partnership mitigates those risks by locking in a high‑margin ancillary product, which should improve earnings outlook for FY‑2026 and raise the forward‑PE multiple for each company by roughly 0.2‑0.3×.

Actionable insight

• Short‑term trade: Consider a buy‑on‑dip if the price pulls back to the 20‑day MA with volume still above average, aiming for the next resistance (≈$8.75 for BSAC, ≈$14.80 for LTM). Set stop‑loss just below the 20‑day MA to protect against a false breakout.
• Medium‑term: The partnership extension is a multi‑year catalyst; maintain a long‑term bullish bias as the loyalty program is expected to lift EBITDA margins for both firms. If the price breaks above the 50‑day MA with sustained volume, roll the position into a larger position, targeting a 10‑12 % upside over the next 3‑6 months.

Overall, the announcement should generate positive price pressure and a sharp spike in volume for both BSAC and LTM, with the technical picture confirming a short‑term breakout and a longer‑term earnings uplift.