Chile stocks firmer with Wall St, peso dips

By Alexia Vlahos

SANTIAGO, April 22 (Reuters) - Chilean shares were firmer in Wednesday afternoon trade, following gains on Wall Street as investors wait to take the pulse of local quarterly earnings, while the peso closed weaker, traders said.

The IPSA .IPSA leading share index was 0.74 percent firmer at 2,688 points while the all-market IGPA index .IGPA rose 0.63 percent to 12,800 points.

Wall Street's Dow Jones industrial average .DJI by comparison rose 0.75 percent as several corporate executives gave positive outlooks that eased concerns about the global recession.

"What is happening abroad, with companies reporting first quarter results in the United States, is going to be the main market driver in the short-term," said Rodrigo Martin, head of research with brokerage Banchile.

He said investors were also looking ahead to local first-quarter company results, and expected that to drive the market in the medium term.

A host of Chilean companies are set to release first-quarter earnings data this month and next which will give investors a clear view of how they are coping with the global crisis.

Banks and retail shares led across the board gains.

Soquimich SQM_pb.SN, Chile's leading exporter of fertilizer and the world's biggest producer of iodine and lithium, fell 0.39 percent to 18,000 pesos a share.

Cervezas CCU.SN, Chile's largest brewer, rose 1.05 percent to 3,549 pesos, while industrial conglomerate Copec COP.SN, the most heavily weighted share on the bourse, rose 0.53 percent to 5,810 pesos.

Shares of regional energy group Enersis ENE.SN rose 0.92 percent to 178.6 pesos a share, while electricity generator Endesa Chile END.SN rose 0.54 percent to 748 pesos.

Banco de Chile CHI.SN, Chile's second biggest bank, rose 0.68 percent to 33.90 pesos, while leading private bank Santander Chile STG.SN rose 2.19 percent to 21 pesos a share.

Cencosud CEN.SN, one of Latin America's biggest retailers, rose 2.22 percent to 1,144.9 pesos a share, while retailer Falabella FAL.SN rose 0.90 percent to 1,990 pesos.

The peso CLP=CL closed 0.26 percent weaker at 583.80/584.10 per dollar compared with Tuesday's close at 582.30/582.60.

"The global markets have been volatile, which creates uncertainty so investors become cautious and seek refuge in the dollar," said one currency dealer.

The peso is now up 9.8 percent against the dollar for the year-to-date, after depreciating 22.3 percent in 2008. (Additional reporting by Froilan Romero; Editing by Diane Craft)