Chile's stocks hit new lifetime highs on Monday, driven by retailers, as recent positive data about the domestic economy spurred demand for Chile's Wall Street-traded stocks, even though trade was thin in the U.S. market due to a holiday, analysts said.

The IPSA blue-chip index (IPSA) rose 0.75 percent to 1,530.55 points, for an accumulated gain of 53 percent so far this year, while the broader IGPA index (IGPA), one of the best-performing markets in the world this year, gained 0.87 percent to 7,402.89 points.

"Even though the United States (markets) was only operating with a skeleton staff, there was demand for American Depositary receipts (ADRs) ... Investors are buying stocks in the retail sector due to the improved outlook for the economy," said Humberto Munoz, analyst with CB brokerage.

Chile's economy is expected to grow more than 4 percent in 2004.

Among the percentage gainers on Monday were department store Falabella (FAL) and supermarket group D&S (DIS) , gaining 3.47 percent to 1,045 pesos and 3.01 percent to 855 pesos respectively.

However, profit taking hit other parts of the market.

Heavyweight energy stock Enersis (ENE) fell .46 percent to 86.60 pesos per share, after gaining 10 percent last week.

The peso currency rose 0.51 percent to 643.00/643.50 per U.S. dollar compared to 646.30/646.80 on Friday amid light trade affected by a holiday in U.S. markets.