Blue chips push Latam stocks up

Latin American stocks seesawed in the year's first trading session on Monday as local investors sought to add cheap blue chip stocks and thin volume kept volatility high. The MSCI Latin American stock index erased early losses to gain for a third day, adding 0.27 percent to 3611.84. Traders said volumes remained thin with Asian, British and US markets closed for New Year.
"Local investors are using cash on hand to buy cheap shares," said Jose Goes, who helps manages 20 million reais ($10.7 million) as an equities broker for Rio de Janeiro-based brokerage Stock Assets. Mining companies and real estate developers drove Brazil's benchmark Bovespa index higher for the second session in three, while telecommunications and retail companies led gains in Mexico's IPC index. Brazil's benchmark Bovespa stock index added 0.95 percent to 57,291.57, recovering from earlier losses. Mexico's IPC index gained 0.53 percent to 37,273.88, erasing the previous session's losses. Chile's benchmark IPSA index fell 0.45 percent to 4158.71.