Chile stocks gain with regional markets, peso firms
SANTIAGO, Oct 3 (Reuters) - Chilean stocks rose in morning trade on Friday, as news of a buyout of troubled U.S. bank Wachovia outweighed pessimistic economic data, while the peso rallied on the outlook for higher domestic interest rates following strong September inflation data.
Chile's all-market IGPA index .IGPA gained 1.02 percent to 12,780 points in morning trade after sliding 3.09 percent on Thursday, while the blue-chip IPSA index .IPSA advanced 1.30 percent to 2,704 points.
U.S. stock indexes bounced back on Friday, as news of a proposed takeover of troubled U.S. bank Wachovia Corp WB.N lifted financial shares and as hopes rose the U.S. Congress would pass a revised $700 billion financial bailout package.
Blue chip gains were led by large retailers and electric utilities.
Diversified regional retailer Cencosud (CEN.SN) rose 2.99 percent in morning trade, after falling 5.39 percent on Thursday, while competitor Falabella (FAL.SN) gained 1.65 percent.
Leading Endesa Spain regional electric utilities also bushed indexes higher, with generator Endesa Chile (END.SN) up 0.94 percent and regional investment arm Enersis (ENE.SN) gaining 2.56 percent.
The peso CHILJ CLP=CL advanced more than 1 percent in morning trade to 562.30/562.80 per dollar, compared with Thursday's close at 569.00/569.50.
Traders said the peso was boosted by the outlook for higher interest rates after September inflation came in at a stronger than expected 1.1 percent, and by the rise in global markets. (Reporting Lisa Yulkowski. Editing by Walker Simon)
