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Latin America stocks mixed

Latin America stocks mixed

Latin American stocks produced mixed results Monday, tracking Wall Street gains with continued fears of a world recession.
After taking a dip in early trading, Mexico's benchmark IPC was up 3.4 percent at 17,562 in afternoon trading. The IPC has lost nearly 50 percent of its value since May.
Brazil's Ibovespa stock index was down 1.6 percent at 30,975 in afternoon trading, as investors continued to flee Brazilian equities on concerns a global recession and curtailing demand for exports to the U.S. and Europe.
Low commodity prices also have been hurting Brazil's biggest companies, and their shares continue to drag down the index.
In mid-afternoon trading Argentina's Merval index dropped 3.82 percent to 865.
Monday's session at the Argentine market brought the return to trading by private pension fund administrators after a three-day suspension.
The Argentine stock market has plummeted on news that President Cristina Fernandez wants to nationalize nearly US$30 billion in private pension funds, a proposal pending before Congress.
But despite fears of massive selling, the pension fund managers were trading cautiously Monday, responding to government pressure and attempting to avoid market fluctuations that could risk their own funds, said economist Maria Castiglioni, a consultant with the Buenos Aires-based Castiglioni, Tiscornia y Asociados.
The government's pension fund takeover has spooked investors, she said.
"This government was already viewed suspiciously by investors and the recent announcement has lowered the investment climate even further," Castiglioni said.
Chile's IPSA index slid 0.2 percent to 2,334 and Colombia's IGBC plunged 5.1 percent to 6,228 percent.
U.S. markets recovered from early losses, helped by investors looking for bargains after sharp drops in Asia overnight. The Dow Jones Industrial Average was up 1.2 percent to 8,476 in afternoon trading.
Brazil's central bank on Monday sold $814 million in dollar swaps on the currency market.
The real, which has lost more than 30 percent of its value against the dollar since the beginning of August, was trading 2.2 to the dollar Monday, down from its 2.3 close on Friday.
The Mexican peso was trading at 13.3, similar to Friday's rate.
Mexico has auctioned off more than $10 billion in foreign reserves in recent weeks to bolster a sinking peso, and Brazil last week earmarked $50 billion for defending the real.


Updated : 2021-01-22 20:14 GMT+08:00