Chile stocks rise on Fed move; peso hits new high

SANTIAGO, March 11 (Reuters) - Chilean stocks rose along with global markets in afternoon trade on Tuesday, after the U.S. Federal Reserve and other central banks announced measures to boost liquidity in credit markets, while the peso rallied for an 11th consecutive session against the dollar.

On the Santiago bourse, the all-market IGPA index .IGPA rose 0.90 to 12,842 points, while the blue-chip IPSA index .IPSA advanced 1.34 percent to 2,746 points.

The U.S. Federal Reserve and other central banks on Tuesday announced a series of aggressive measures to inject funds into cash-strapped credit markets, allowing financial firms to use mortgage backed securities as collateral for central bank loans.

"The Fed announced expansionary measures and that's boosted stock markets," said Rodrigo Sarria, deputy manager of of the Intervalores brokerage, who also mentioned that stock prices were attractive following the most recent string of losses.

Gains on the blue-chip index were led by forestry giant Copec and leading electric utilities, as 28 of 40 issues traded higher in afternoon trade.

Industrial conglomerate and wood pulp exporter Copec COP.SN, weighted at 16 percent of the IPSA saw its shares rise 1.92 percent to 7,620 pesos a share.

Endesa Spain's regional investment arm Enersis ENE.SN surged 4.02 percent, while generating subsidiary Endesa END.SN rose 1.1 percent.

Other advancing issues included dominant air carrier LAN LAN.SN (LFL.N: Quote, Profile, Research), up 2.52 percent, and mineral fertilizer exporter SQM SQM_pb.SN, the world's largest producer of lithium and iodine, with a gain of 2.16 percent.

The peso CHILJ <CLP=CL> appreciated 1.38 percent to end at 434.00/434.30 pesos per dollar, compared with the prior session's close at 440.00/440.30.