SANTIAGO, July 25 (Reuters) - Chilean stocks rose in afternoon trade on Friday, buoyed by unexpectedly strong U.S. economic data and lower oil prices, while the peso closed unchanged against the dollar after a volatile session.

The all-market IGPA index .IGPA advanced 0.99 percent to 13,990, reversing the prior session's loss, while the blue-chip IPSA .IPSA rose 1.33 percent to 2,911.

"The (U.S.) consumer confidence index was better than expected. New housing data was bad, but not as bad as the market expected, and durable goods orders were strong," said Marcelo Ogaz, an analyst with brokerage BICE. "On top of that, oil prices fell, which is great for stock markets in general."

On the Santiago exchange retailers led gains, with regional giants Falabella FAL.SN and Cencosud CEN.SN climbing 5.11 percent and 3.25 percent, respectively.

Wood pulp producers also advanced, with industrial conglomerate Copec COP.SN, weighted at about 12 percent of the IPSA, up 1.4 percent and CMPC CAR.SN up 1.86 percent.

Regional Endesa Spain investment group Enersis ENE.SN rose 2.35 percent, while dominant air carrier LAN LAN.SN (LFL.N: Quote, Profile, Research) advanced 2.77 percent.

Blue-chip gains outnumbered declines by more than 6 to 1 in afternoon trade.

The peso CHILJ CLP=CL closed little changed on Friday at 492.30/492.80 per dollar from Thursday's 492.30/492.60 after a volatile session, putting its gain versus the dollar at about 1.1 percent year to date.

"Lower oil prices have helped the peso. We were close to breaking through the 490 peso barrier," one trader said. "But a supply and demand war drove levels back to where they started."

The central bank continued with its daily purchase of $50 million as part of an $8 billion currency intervention program begun in April after the dollar fell to around 430 per dollar. The dollar peaked briefly above 530 pesos at the end of June. (Reporting by Froilan Romero and Manuel Farias; Writing by Lisa Yulkowski; Editing by James Dalgleish)