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Chile stocks fell on Wednesday as investors cashed in on gains made in two consecutive record closing highs on the benchmark stock index, while the peso currency gained on speculation that the central bank could move on Thursday to make borrowing more costly. The IPSA index of the 40 most liquid stocks on the Santiago Stock Exchange gave up 0.55 percent to 1,826.18 points, while the IGPA index of all stocks on the exchange also fell 0.35 percent, to 8,923.95 points, according to preliminary closing figures.
"After consecutive rises in most sectors, the market decided to take profits, although this will be transitory because the trend is still positive," said Lorena Pizarro, head of research at Alfa brokerage in Santiago.
Market bellwether energy firm Enersis, the most heavily weighted company on the bourse, fell 0.50 percent to 96.00 pesos per share. The company had risen in recent days after data showed Chile's economy expanded at its fastest rate in seven years last year and is on track for more big growth this year, which means continued healthy demand in the energy sector.
LAN Airlines, the dominant air carrier in Chile, shed 1.17 percent to 4,070.00 pesos per share despite reporting growth in passenger and cargo traffic in January. LAN's share price hit a record closing high of 4118.10 pesos on Tuesday.

Copyright Reuters, 2005

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