Chile stocks rise on optimism; peso hits new high

SANTIAGO, March 12 (Reuters) - Chilean stocks rose in afternoon trade on Wednesday, as the U.S. Federal Reserve's rescue measures buoyed global markets for a second straight day, while the peso rallied for a 12th straight session against the sagging dollar.

Chile's all-market IGPA index .IGPA rose 1.23 percent to 13,107 points, while the blue-chip IPSA index .IPSA advanced 1.62 percent to 2,820 points.

"Even though Wall Street has moderated somewhat, its gains have pushed other markets higher, and Chile is no exception, with heavy buying of leading blue chips," said Lorena Pizarro, head of research with the Alfa brokerage.

The U.S. Federal Reserve 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.

Cross-sector gains on Chile's blue-chip index were led by forestry giant Copec and leading electric utilities, with 36 of 40 issues higher in afternoon trade.

Shares of wood pulp exporter Copec COP.SN, weighted at 16 percent of the IPSA, advanced 1.61 percent to 7,826 pesos. Copec holding company Antarchile ANT.SN weighted at 4.9 percent of the IPSA, rose 2.19 percent.

Endesa Spain's regional investment arm Enersis ENE.SN advanced 1.05 percent, while generating subsidiary Endesa Chile END.SN rose 1.68 percent. The two companies account for 15 percent of the capitalization on the local blue-chip index.

Locally owned electricity generator Colbun COL.SN jumped 4.7 percent to 78 pesos a share.

Other advancing issues included dominant air carrier LAN LAN.SN (LFL.N: Quote, Profile, Research), up 2.56 percent, and shipper Vapores VAP.SN with a surge of 4.01 percent. Transport stock prices have been heavily penalized during the recent stocks slump by spiking oil prices.