Shares in Chile-based Cencosud, one of South America's largest retailers, opened down 2.3 percent on Thursday on fears over its exposure to Argentina.
Argentina has defaulted on its debt for the second time in 12 years after last-minute talks with 'holdout' creditors failed.
About a quarter of Cencosud's sales were in Argentina last year, according to a company presentation.
Department store owner Falabella, which also has operations in Argentina but is less exposed than Cencosud, was down just under 2 percent.
"The stocks are falling because of their exposure to Argentina," said a trader.
Santiago's blue-chip IPSA stock index was 0.6 pct lower. (Editing by Nick Zieminski)