Latam stocks fall

Latin American stocks fell on Friday in choppy trade, as light volumes underscored investor reluctance due to persistent worries that the eurozone sovereign debt crisis is widening. The MSCI Latin American stock index lost 0.9 percent, falling to a four-week low.
The gauge shed nearly 5 percent during the week, its worst five-day stretch since late September as investors saw a eurozone debt crisis potentially widening to engulf larger economies such as Italy and France. Brazilian stocks ended down even as Mexican stocks rose after bouncing off a key support level. But volume was low across the region, underscoring investors lack of conviction on which direction stocks are heading over the medium term.
"Volumes today are really weak," said Joao Pedro Brugger, an analyst at Leme Investimentos. "This shows the market is really at a point of waiting." Trading volume in Mexico fell to its lowest since the Labour Day holiday in early September. "I think a lot of people are on the sidelines, and you have mostly speculators in the market because the investment horizon has shortened to one or two weeks," said Patricia Berry, a strategist at brokerage Intercam in Mexico City. Markets will stay focused on the eurozone next week, too, with Spain's centre-right People's Party looking set for an election victory on Sunday over the Socialists, widely blamed by voters for the country's economic woes.
Brazil's Bovespa stock index fell 0.45 percent, reversing early gains. The index shed 3.1 percent during the week to close at a four-week low. Banks led losses, with Banco do Brasil losing 1.83 percent, Itau Unibanco sliding 1.52 percent and Bradesco dropping 1.37 percent.
Mexico's IPC index rose 0.48 percent to 36,284.20 points after bouncing off a key support level at 36,000, led by less-liquid stocks in what is often a sign of institutional purchases of index-linked funds. The index still posted a 3.4 percent loss in the week. Retailer Elektra rose 4.56 percent and bottler Femsa rose 2.02 percent.
Carlos Hermosillo, a stock strategist at Banorte-IXE in Mexico City, said the IPC would likely trade between 36,000 and 37,000 next week. "It will be difficult to get above that, stocks are not exactly cheap," Hermosillo said. Mexican stocks closed at a seven-month high last week, pushing UBS to downgrade its weighting of Mexican shares early this week, saying a rally had made local shares relatively expensive. Chile's IPSA index declined 0.55 percent, with the index off 1.7 percent for the week. Shares of Banco Santander Chile, the Chilean unit of the Spanish bank, dropped 1.75 percent.