Argentina stocks gain, bonds and peso weaker

miércoles 5 de noviembre de 2008 19:02 ARST

BUENOS AIRES Nov 5 (Reuters) - Argentine stocks ended up for a seventh straight session on Wednesday due to late buying by state-run investment funds, while bonds fell on profit-taking after a run of four gains.

The benchmark MerVal stocks index .MERV closed up 1.12 percent at 1,135.79 points, reversing earlier losses and bucking the downward trend of other global stock markets. The index has climbed 35.2 percent in the last seven sessions.

"Last-minute buying by funds lifted the MerVal, with buying focused on telecommunications and banking stocks," said Marcelo Paccione, an analyst at the ConsultCapital consulting firm.

Traders said the investment fund Nacion Bursatil, which is run by state bank Banco Nacion, was the biggest player in Wednesday's buying.

Among the biggest gainers were Telecom Argentina (TEC2.BA: Cotización), which rose 7.14 percent to 5.4 pesos per share.

Trade volume on the broad market was $23.4 million, and of active shares 26 advanced, 27 retreated and 15 were unchanged.

Locally traded Argentine bonds ended with an average loss of 2.4 percent, after opening up 0.8 percent. The local debt market has climbed by an average of 13 percent in the last four sessions due to bargain-hunting after October's sell-off.

Leading the losers was dollar-denominated Par paper ARPARD=RASL, which fell 3.3 percent in over-the-counter trade, according to the ask price.

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