Chile stocks fall on U.S. worries; peso dips

SANTIAGO, March 13 (Reuters) - Chilean stocks slipped in afternoon trade on Thursday, as Wall Street trended lower on recession and credit concerns, while the peso eased slightly against the dollar after a 12-session rally.

Chile's all-market IGPA index .IGPA slipped 0.33 percent to 13,161.49 points, while the blue-chip IPSA index .IPSA fell 0.57 percent to 2,832 points.

U.S. stocks fell on Thursday, following a surprise drop in U.S. retail sales and on concerns about credit problems, wiping out most of the gain fueled by Tuesday's Federal Reserve rescue measures.

"There was bad news from the United States that we're still evaluating," said Antonio Fuenzalida, deputy investment manager with the Euroamerica brokerage.

"On top of that our market has risen about 5 percent in the last two days, so any bad news was excuse enough for taking profits."

On Chile's blue-chip index, 30 of 40 issues traded lower in afternoon trade.

Endesa Spain regional generating subsidiary Endesa Chile END.SN fell 1.19 percent, while dominant air carrier LAN LAN.SN (LFL.N: Quote, Profile, Research), declined 0.83 percent.

Shares of wood pulp and paper company CMPC CAR.SN retreated 1.18 percent to 17,985 pesos.

Percentage losses were led by Chile's lone sugar producer IANSA IAN.SN, which was down more than four percent at one point, and No.1 bank Santander Chile STG.SN with a loss of 1.78 percent.