(Bloomberg) -- Chilean assets plunged after the ruling coalition suffered a surprise drubbing in the election for a constituent assembly, placing the writing of a new charter largely in the hands of the left-wing.The benchmark stock exchange tumbled as much as 9.8%, the biggest decline since the start of the pandemic in March of last year, while the peso fell 2%. Yields on Chile peso bonds due in 2030 jumped 18 basis points to 3.78%.Candidates from the ruling coalition obtained just 37 of 155 seats on the assembly designed to write the new constitution, according to data consultancy firm Unholster. Contenders unaffiliated with any political parties secured 65 seats. The result means the ruling coalition falls short of the one-third threshold they needed to block market-unfriendly clauses in the new charter.“Chile has been one of the best performing markets this year. The party, though, may be over,” said Guido Chamorro, a portfolio manager at Pictet Asset Management Ltd. in London. “The constitutional assembly elections this weekend remind us that market-unfriendly, leftist candidates can do very well in the post-pandemic era.”Read more: What’s at Stake as Chile Writes a New Constitution: QuickTakeThe results reflect growing rejection of traditional parties, adding to uncertainty as one of Latin America’s richest nations rewrites its laws following the worst social unrest in a generation. At stake are the rules that helped drive more than three decades of growth, while simultaneously fueling social discontent and inequalities.Radical LeftKey points of debate during the rewrite are expected to include natural resources, pensions and social services. More immediately, the results may add momentum to a copper royalty bill set to go before senate this week that would create one of the heaviest tax burdens in global mining.Roughly 6.4 million people participated in the elections, representing a turnout of 43%, according to data from electoral office Servel. The figure was below the government’s forecast of 7 million votes.Leftist and little-known candidates also pulled off a string of surprises in local elections. The conservative mayor of downtown Santiago lost re-election to a Communist Party candidate, while Karina Oliva of the far-left Frente Amplio advanced to a runoff vote for Santiago Metropolitan Region governor.Assembly candidates from the left-wing group Lista Del Pueblo, or The People’s List, were big winners in the weekend vote, according to Cristobal Huneeus, Director of Data Science at Unholster.“Among the most important issues that they back are human rights, civil society, the environment and the idea that the current economy doesn’t work in people’s favor,” he said.Going forward, the election results stand to boost possible presidential candidacies from leftist contenders including Deputy Gabriel Boric and Daniel Jadue, who is mayor of Santiago’s Recoleta district, Huneeus said. Chileans will vote for the next head of state in November.‘Clear’ MessagePresident Sebastian Pinera has faced criticism for being out of touch with Chileans currentrly grappling with the country’s worst virus surge to date. He came under fire for belatedly getting behind plans for early pension withdrawals after first trying to block the popular proposal.“Our citizens have sent a strong and clear message to the government and traditional political parties,” Pinera said Sunday night in a televised speech. “We are not adequately in sync with citizens’ demands, and we are being questioned by new leadership.”Last year, citizens overwhelmingly decided to scrap the current constitution implemented during the Augusto Pinochet dictatorship. It was a key demand of protesters who took to the streets starting in October 2019 initially over a subway fare hike before broadening demands to include better public services.“We need a constitution that helps all Chileans, not only the wealthy,” said Felipe Mora, 22, who voted on Saturday in downtown Santiago. “Something more egalitarian.”Covid SurgeThe election was originally scheduled for April, but lawmakers voted to postpone it until May as daily Covid-19 infections and hospitalization reached all-time highs. The Constitutional Assembly will now have up to a year to draft the new charter.Chile will be able to withstand significant political and economic uncertainties after the rating downgrade in October 2020, according to an e-mailed statement from Fitch Ratings, which described the country’s current rating at A- as “very solid.”Government-backed candidates were not the only ones who took a hit. Moderate and center-left parties such as the Socialists and Christian Democrats obtained just 15% of Assembly votes.“The clearest signals so far are that the right is weaker than expected and the center has disappeared,” said Jennifer Pribble, Associate Professor of Political Science at University of Richmond. “Pinera seems to have really hurt his coalition.”(Updates with local analyst comments starting in 8th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.