MEXICO CITY: Latin American stocks dipped on Tuesday as investors remained wary about Greece's economic road ahead despite securing a second bailout package overnight, helping to avert a chaotic debt default.
The MSCI Latin American stock index fell 0.39 percent on Monday with Brazil's benchmark Bovespa stock index, a regional bellwether, closed for a national holiday.
Euro zone finance ministers finally approved a rescue package for debt-laden Greece after all-night negotiations but doubts remained over Athens' financial future.
"The loan greatly reduced the possibility of a default, that's clear, but there's doubt over whether it's sustainable in the long term," said Luis Rodriguez, an analyst at Mexican brokerage Finamex. "There are all still unresolved details."
The $172 billion rescue package helped Greece avoid an imminent chaotic default that investors feared would harm global financial markets and cause risk aversion to Latin American markets. The deal will also enable Athens to launch a bond swap with private investors.
The MSCI index has surged nearly 18 percent in 2012, aided by solid economic data out of top regional trading partners, the United States and China as well as easing concerns about Europe's debt troubles.
"Aside from the news out of Greece, there is still fundamentally positive data mostly coming out of the United States," Rodriguez said. "We are in the process of an economic recovery; it's slow but still there."
In the medium term, those factors will support Mexican stocks, he added.
Mexico' IPC stock index is running near record highs, largely boosted by the country's trade ties to the United States, where it sends nearly 80 percent of its exports.
Mexico's IPC index fell 0.62 percent, dragged down by telecom giant America Movil which fell 1.12 percent.
Pharmaceutical products maker Genomma slid 6.5 percent after offering to buy Prestige Brands, which makes healthcare and household cleaning products, in an all-cash deal.
Top retailer Wal-Mart de Mexico advanced 0.2 percent after Walmex posted a better-than-expected rise in fourth-quarter profits.
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