Argentina markets rebound after October's sell-off

martes 4 de noviembre de 2008 18:50 ARST

(Adds stocks, bonds closing prices)

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 oil prices bolstered energy-related stocks which led the session's gainers, though banks were stronger mid-session.

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 media speculation about a possible government buyback plan has also lifted prices, which boosted banking stocks on the MerVal.

A surge in other global stock markets lifted the MerVal higher in late afternoon trade, buoying index heavyweight and steelmaker Tenaris (TENA.BA: Cotización), which rose 11.49 percent to 44.15 pesos per share.

"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."   Continuación...