Chile shares head for biggest monthly gain in 15 yrs

By Alexia Vlahos

SANTIAGO, May 29 (Reuters) - Chilean stocks were firmer on Friday afternoon, led higher by retail and utility shares and on course to post their biggest monthly gain in 15 years, while the peso closed firmer, traders said.

The blue-chip IPSA index .IPSA was 0.50 percent firmer at 3,117 points, while the all-market IGPA index .IGPA rose 0.98 percent to 14,748 points.

Chile's bourse has risen sharply in the past few weeks, led by sectors such as construction, retail and commodities. The IPSA, which is up around 30 percent year-to-date, was heading to close May with a gain of more than 16 percent, its biggest gain in a single month since January 1994.

"There are particular sectors which are doing well today like the retail sector because of the rise we had yesterday by La Polar, Cencosud, and also Ripley," said Pamela Auszenker, head of research at the Bci brokerage.

"And other sectors like utilities are doing well," she added.

Shares in industrial conglomerate Copec COP.SN, the most heavily weighted company on the bourse, rose 1.47 percent.

Shares of Cencosud CEN.SN, one of Latin America's largest retailers, were up 2.04 percent to 1,456 pesos a share.

Shares in rival retailer La Polar LAP.SN fell 1.31 percent to 1,920 pesos, but surged more than 15 percent on Thursday after receiving an offer to merge with a supermarket affiliate of private equity fund Southern Cross Latin America.

Retailer Falabella FAL.SN rose 0.32 percent to 2,200 pesos, while fellow retail chain Ripley RIP.SN rose 5.02 percent to 415 pesos a share.

Regional energy group Enersis ENE.SN rose 2.65 percent to 191 pesos a share, while electricity generator Endesa Chile END.SN rose 1.28 percent to 830 pesos.

The Chilean peso CLP=CL closed 0.5 percent firmer at 561.00/561.50 per dollar compared with Thursday's close of 563.80/564.10.

"The weakness of the dollar in foreign markets against other important currencies, namely the euro, is favoring the peso," said one currency dealer.

The peso is up 14.3 percent against the dollar year-to-date after slumping 22.3 percent in 2008. (Additional reporting by Froilan Romero. Editing by Diane Craft)