Chile stocks gain, peso closes near three-week lows
By Aaron Nelsen
SANTIAGO, Sept 2 (Reuters) - Chilean stocks edged higher on Wednesday, buoyed by commodity shares, while Chile's peso fell to near three-week lows on volatility in global bourses and a drop in copper prices, traders said.
Chile's blue-chip IPSA stock index .IPSA ended a two-day skid during which it lost nearly 3 percent, closing 0.44 percent higher at 3,146.63 points while the all-market IGPA .IGPA rose 0.29 percent to 14,949.43.
"The market has been very weak in terms of volume, principally due to volatility on international markets," said Cesar Perez-Novoa, executive director of Celfin Capital. "Shares that have made the significant movement on the day include Copec and Colbun."
Chilean industrial conglomerate Copec COP.SN, climbed 2.35 percent to 6,620 pesos per share, while shares of the country's No. 2 electricity generator Colbun COL.SN closed 1.61 higher at 126 pesos.
Chilean steel and iron ore producer CAP CAP.SN rose 1.53 percent at 13,180 pesos.
The peso CLP=CL ended weaker for a seventh straight day, closing 0.41 percent lower at 558.00/558.50 per dollar compared to Tuesday's close of 555.70/556.20.
That followed losses on Wall Street where the Dow Jones industrial average .DJI closed 0.32 lower at 9,280.67 on worries a stock rally may have got ahead of economic reality.
Copper prices, which often influence the direction of Chile's peso, fell 2.57 percent on the London Metal Exchange on Wednesday.
Chile's currency has advanced 14.87 percent against the greenback so far this year after slumping 22.3 percent in 2008.
(Reporting by Aaron Nelsen; Editing by Andrew Hay)
