UPDATE 2-Fenosa H1 net profit up 28 pct on stake sales

(Adds comments from analyst conference)

By Tracy Rucinski and Sarah Morris

MADRID, July 15 (Reuters) - Spanish power company Union Fenosa (UNF.MC: Quote, Profile, Research) posted a 28 percent rise in first-half net profit as it sold stakes in two companies and benefited from a 57 percent jump in the wholesale price of electricity.

Union Fenosa said on Tuesday net profit rose to 652.3 million euros ($1.03 billion), boosted by 203 million euros in net capital gains from selling non-strategic stakes in telecoms company France Telecom Spain, formerly Auna, and Philippine utility Meralco (Manila Electric Company).

Net profit beat a forecast of 639.9 million euros in a Reuters poll of six analysts and compared with 510.0 million euros in the same period last year.

At 1358 GMT Union Fenosa's share price was down 1 percent at 10.94 euros as the wider Ibex .IBEX blue chip index fell 3.4 percent.

Core profit, or earnings before interest, taxes, depreciation and amortization (EBITDA) rose 9.3 pct to 1.1 billion euros, in line with forecasts while revenue climbed 20 percent to 3.4 billion euros.

Fenosa said demand in Spain had risen by 2.4 percent and it had benefited from a 57.1 percent rise in wholesale market electricity prices compared with last year, due to low hydroelectric power production and rising fuel prices.

Fenosa's shortfall in hydroelectric production was compensated for by a 37.8 percent rise in production by combined-cycle gas-fired plants, boosted by the Sagunto plant in Valencia coming on line in the second quarter.