Argentina markets rebound after October's sell-off

martes 4 de noviembre de 2008 20:07 ARST
 

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BUENOS AIRES Nov 4 (Reuters) - Argentina's currency, stocks and debt markets rallied on Tuesday, recovering some of the ground lost last month when investor concern over the global crisis and a pensions takeover plan battered prices.

The benchmark MerVal .MERV stocks index closed up 6.19 percent at 1,123.11 points for a sixth straight gain in which it has risen 33.7 percent. Higher global oil prices bolstered energy-related stocks which led the session's gainers, though banks were stronger earlier in the day.

"Stock prices are trying to find a new level after the bearish months," said Mariano Tavelli, a trader at Tavelli & Co brokerage. "The MerVal again got a boost from the positive international context."

Argentine banks are among the biggest holders of government bonds traded on the local market, which gained 4.7 percent on average on Tuesday for a fourth consecutive gain.

Leading the gainers was dollar-denominated Discount paper ARDISCP=RASL, which soared 10.7 percent, according to the ask price.

Local Argentine debt prices fell 60 percent on average because of the global financial crisis and a government plan to take over private pension funds.

Bargain-hunting has spurred the recovery and speculation about a possible government buyback plan has also lifted prices, which in turn have boosted bank stocks on the MerVal.

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