Chilean stocks slide on global bourses; peso down

SANTIAGO, Oct 26 (Reuters) - Chile's benchmark IPSA index .IPSA closed lower on Monday, falling in line with global bourses as investors book profits ahead of a host of local company third-quarter earnings, analysts said.

Chile's benchmark IPSA index .IPSA extended its recent trend of early gains followed by afternoon profit taking, falling 0.5 percent to 3,405.56, while the all-market .IGPA closed 0.4 percent lower to 16,012.29.

"The market has been tracking closely with foreign bourses," said Roberto Guzman, head of investment for FIT Corredores de Bolsa. "There has also been some profit taking, principally with the biggest stocks on Chile's market."

With local pension funds near their legal investment limits, some have taken advantage of early gains to book profits, traders said.

The IPSA was dragged lower on a host of stocks, including Chilean retailer La Polar LAP.SN, falling more than 2 percent to 2816.8 pesos.

And Chilean steel and iron ore producer CAP CAP.SN, down nearly 3 percent to 14,359 pesos.

Earlier in the day Chile's peso CLP=CL skidded 0.4 percent to 534.30/534.60 per dollar from Friday's close of 532.30/532.60 on negative global bourses and dollar purchases, ending five straight days of gains.

The peso has gained 20 percent against the greenback this year after tumbling 22.3 percent in 2008 during the worst of the financial crisis last year. (Reporting by Aaron Nelsen; Editing by Kenneth Barry)