Chile peso weaker on global bourse; stocks down

By Aaron Nelsen

SANTIAGO, Oct 7 (Reuters) - Chile's peso CLP=CL closed slightly weaker against the U.S. dollar on Wednesday, falling in line with global bourses and lower copper prices.

The peso weakened 0.09 percent to 554.00/554.30 per dollar from Tuesday's close of 553.50/554.00. The peso has gained 15.7 percent against the dollar this year after slumping 22.3 percent in 2008.

"The foreign markets were erratic today... which dragged the peso down slightly," said a local trader, who asked not to be named because he was not allow to speak publicly.

On stocks, the benchmark IPSA index .IPSA seesawed in afternoon trading a day after climbing near two-year highs as analysts say the exchange has little upside through the end of the year.

The blue-chip index was trading 0.15 percent lower to 3,411.22, and the all-market IGPA .IGPA was down 0.07 at 16,042.91.

"The market should remain more or less flat from here through the end of the year as there aren't additional drivers and most stocks have little room to grow," said William Baeza, financial analyst with Euroamerica Corredores brokerage.

Santander Chile STG.SN, Chile's No. 1 private bank, traded more than 2 percent lower to 29 pesos per share.

Santander's Brazilian unit has raised $8.05 billion with an IPO in Sao Paulo and New York.