Chile peso dips vs dlr as copper falls; stocks rise

(Updates with bourse close)

By Froilan Romero and Manuel Farias

SANTIAGO Feb 18 (Reuters) - Chile's peso fell for a third straight session on Wednesday, closing at its lowest level in over a week as the dollar gained abroad and copper prices fell, while shares closed firmer, traders said.

The peso CLP=CL ended 0.5 percent lower at 596.00/596.50 per dollar compared to Tuesday's close at 593.00/594.50. The peso fell 1.23 percent on Tuesday and is now 7.55 percent firmer against the dollar in the year to date after depreciating 22.3 percent in 2008.

"The fall in the peso reflects what is going on abroad with the dollar firmer against the main currencies as well as a new fall in the copper price which is pretty worrying," said one currency dealer, who asked not to be named.

Chilean stocks closed firmer after falling on Tuesday behind a sharp loss on Wall Street.

Chile's blue-chip IPSA index .IPSA rose 0.64 percent to 2,609.94 points, while the all-market IGPA index .IGPA rose 0.49 percent to 12,419.59 points in thin volume as some shares clawed back ground lost on Tuesday.

The IPSA is now up about 10 percent year-to-date, after a 22.1 percent slide last year.

"The market was pretty tight today (with low volumes)," said Roberto Guzman, head of research with the FIT brokerage.

"Investors remained pretty nervous after the sharp falls in the market yesterday and are also looking to see how markets react to (U.S. President Barack) Obama's plan on the mortgage issue."

Shares of Soquimich SQM_pb.SN, Chile's chief fertilizer exporter and the world's largest producer of iodine and lithium, rose 3.21 percent after falling 5.51 percent the previous session.

Leading steel and iron ore producer CAP CAP.SN, one of the most heavily weighted companies on the Santiago bourse, gained 0.05 percent after closing 1.82 percent lower on Tuesday.

Regional energy group Enersis ENE.SN rose 2.77 percent after a 0.8 percent drop the previous session, while electricity generator Endesa Chile END.SN fell 0.12 percent after falling 1.66 percent on Tuesday.

Chilean retailer Falabella FAL.SN rose 3.04 percent, while regional retail giant Cencosud CEN.SN gained 1.31 percent.

Shares in Santander Chile, the country's leading bank and a unit of Spain's Santander (SAN.MC) closed 1.41 percent higher.