Chile stocks rise on U.S. earnings, peso firms

SANTIAGO, April 18 (Reuters) - Chilean stocks rose for a sixth session in afternoon trade on Friday, as local investors latched onto a rise in U.S. stocks on better-than-expected earnings reports.

The peso closed slightly higher even though the central bank continued buying dollars to curb the peso's appreciation in the first week of its planned currency intervention.

The all-market IGPA index .IGPA traded 0.81 percent higher at 14,216 points, while the blue-chip IPSA .IPSA rose 0.87 percent to 3,060.

U.S. stocks jumped 2 percent on Friday after a stronger than expected first quarter performance of Citigroup (C.N: Quote, Profile, Research) sparked hope the credit crisis was bottoming out.

"Corporate earnings in the United States have been pretty good, so global stocks are flying high and we've latched on," a trader said. "We've been rising for a few days and we're hanging on. Things look good."

Chilean stocks have risen for six consecutive days since the central bank intervened to curb the strong peso and indicated that interest rates could be cut rather than raised despite relatively strong inflation.

Of the 40 blue-chip stocks, 27 issues traded higher and only four fell.

Gains in the raw materials sector included steel maker and iron ore miner CAP CAP.SN, with an advance of 1.82 percent to 16,499 pesos. Cap earnings have been rising on higher world prices for ore and on expanded volumes.

Wood pulp and paper producer CMPC CAR.SN gained 1.94 percent to 17,860 pesos a share.