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Mexico stocks

slightly up in

volatile day

MEXICO CITY: Mexican stocks ended a roller-coaster session slightly higher as investors welcomed the details of a government debt plan but were unnerved by the battered Argentine market, traders said on Thursday.

The main IPC index of 37 shares finished up 3.80 points, or 0.16 percent, at 2,447.04. The index varied between 2,421.77 and 2,551.12 points.

Turnover was heavy with 128.58 million shares trading hands.

"It was a hectic day, but the market managed to end firm," one trader said.

Despite the gain in the index, the overall market was mixed, with decliners narrowly beating gainers by a 34-33 margin.

Stock prices were bouyed by a positive reception to the details of a government plan to reduce interest rates owed by bank debtors, analysts said.

Although investors worried the plan could fuel inflation and undermine the government's tight fiscal policy, Mexican leader Ernesto Zedillo said in unveiling the plan that it would be paid for by other budget cuts.

Just as nerves about the debt plan warned, however, new jitters arose as rumors that Argentine Economy Minister Domingo Cavallo was set to resign battered the Argentine market and hurt stocks throughout the region.

Big gainers were carrier Aeromex CPO, up 3.92 percent on optimism over its recent restructuring efforts, and retailer Cifra B, up 3.27 percent.

Local bank stocks led losers on fears the new bank plan would cut into their margins. GFMulti fell 10 percent, AbacoGF tumbled 5.14 percent, and GFNorte declined 5 percent.

Market heavyweight Telmex L fell 1 percent.-Reuter