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, 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...