Chile stocks slip, peso gains on bets of rate hike
By Froilan Romero and Manuel Farias
SANTIAGO, Aug 29 (Reuters) - Chile stocks slipped on Friday and the peso rose against the dollar as investors bet on yet another rise in benchmark rates at a central bank meeting next week.
Chile's all-market IGPA stock index .IGPA was down 0.15 percent in late trade at 13,767.17 points, while the blue-chip IPSA .IPSA was down 0.23 percent at 2,889.80 points.
The peso CHILJ CLP=CL, which has depreciated strongly since the central bank introduced an $8 billion intervention program in April, closed up against the dollar for a third consecutive session.
The currency rose 0.62 percent on the day to 512.50/512.80 per dollar, versus Thursday's close at 515.50/516.00.
"The market is betting on what now appears will be a sure rise in interest rates next week and is reacting by liquidating a portion of its dollar positions," one trader said.
Chile's central bank raised rates in August by 50 basis points, the third such increase in as many months as it pushed the rate to 7.75 percent, the highest in nearly a decade.
According to central bank minutes released on Friday, the bank had debated a rise of as much as 75 basis points, and traders say another hike is certain at a Sept. 4 meeting.
On the stock market, retailers fell.
Chile's biggest supermarket operator D&S DIS.SN, which owns the Lider and Ekono chains, saw its shares down 1.51 percent to 195.010 pesos per share.
Department store chain La Polar LAP.SN also fell, losing 0.26 percent, and competitor Ripley RIP.SN fell 0.57 percent.
Stock in industrial conglomerate Empresas Copec COP.SN fell 0.7 percent and leading carrier LAN Airlines LAN.SN fell 0.48 percent.
Shares in leading fertilizer exporter Soquimich (SQM_pb.SN) fell for a second day, down 1.07 percent at 19,949 pesos per share, and stock in Chile steel and iron ore producer Cap CAP.SN was down 1.75 percent at 18,650 pesos. (Editing by Leslie Adler)
