Chile stocks pare recent advance, peso gains

SANTIAGO, July 24 (Reuters) - Chilean stocks fell in afternoon trade on Thursday, as investors focused on weak U.S. economic data and took profits following a five-day rally. The peso gained ground against the dollar.

The all-market IGPA index .IGPA slipped 0.55 percent to 13,899 points after gaining 6.6 percent in the prior five sessions. The blue-chip IPSA .IPSA fell 0.75 percent to 2,886 points.

"The two main factors affecting the market today are profit taking and worse-than-expected U.S. economic news," one trader said. "Trade volumes have been reduced."

U.S. stocks indexes traded more than 1 percent lower as oil prices halted their decline at around $125 per barrel, and after disappointing initial jobless claims and existing home sales data.

Cross sector losses were led by issues that advanced the most in the recent rally.

Retail sector losses included regional diversified heavyweights Cencosud CEN.SN and Falabella FAL.SN, with losses of 1.85 percent and 2.05 percent, respectively, while department store chain Ripley RIP.SN fell 4.28 percent.

Giant wood pulp exporter Copec COP.SN, weighted at about 12 percent of the IPSA, saw its shares fall 0.82 percent.

Regional electric utilities Enersis ENE.SN and generating subsidiary Endesa Chile END.SN fell 2.59 and 1.16 percent respectively.

Transport companies also pared recent gains, with dominant air carrier LAN LAN.SN (LFL.N) down 2.25 percnt to 5,400 pesos.