BLUE CHIP stocks were higher at the close on Wall Street yesterday as investors sought less risky issues. The Dow Jones average of 30 industrial stocks rose 16.62 to finish at 5,194.07.

Semi conductor issues fell after Paine Webber brokerage firm downgraded five of them, saying that despite strong industry trends, those stocks had a big downside risk.

Alex Brown and Sons also downgraded three technology stocks.

Computer related stocks were also still suffering from an announcement on Tuesday by Silicon Graphics that the company's fourth quarter earnings would fall below analyst expectations.

Meanwhile, blue chip stocks rose as investors bought what Wachtel described as "safe haven type of stocks", considered dependable even during an economic downturn.

Advancing issues led decliners by almost five to three with 15-5 up, 924 down and 644 unchanged.