Retail, commodity stocks lift Chile bourse, peso off

By Alexia Vlahos

SANTIAGO, May 25 (Reuters) - Chilean shares were firmer in Monday afternoon trade, led higher by commodity, retail and construction stocks, while the peso closed weaker amid high demand for dollars, traders said.

The IPSA .IPSA blue-chip share index was up 1.18 percent at 3,099 points, while the all-market IGPA index .IGPA was 1.02 percent firmer at 14,595 points.

"People are investing in local mutual funds," said Andres Roman, head of institutional investment at brokerage BICE. "Portfolio managers of those funds are buying shares," he added, citing gains in retail shares and steelmaker CAP CAP.SN.

Wall Street, which often sets the tone for Chilean markets, was closed for the Memorial Day holiday.

CAP surged 6.92 percent to 13,098 pesos a share. Traders said they saw no fundamental reason for the gains.

Cencosud CEN.SN, one of Latin America's largest retailers, traded 2.55 percent firmer at 1,438 pesos.

Shares in retailer Falabella FAL.SN rose 2.42 percent to 2,200 pesos a share, while those in rival La Polar LAP.SN rose 2.94 percent to 1,745 pesos.

The Chilean peso CLP=CL closed 0.71 percent weaker at 564.00/564.50 per dollar compared with Friday's close of 560.00/560.50.