Argentine bonds jump, stocks hit 7-month high

martes 5 de mayo de 2009 17:37 ART

BUENOS AIRES May 5 (Reuters) - Argentina's stock, currency and bond market trends on Tuesday.

* MerVal stocks index .MERV closed at a seven-month high, rising 0.76 percent to 1,363.19 points.

* Banks led the gains, boosted by rising prices for the Argentine sovereign bonds they hold. Foreign investors are showing renewed interest in high-risk debt such as Argentina's, as they see a recovery on the horizon in the United States.

* Grupo Financiero Galicia GFG.BA, the financial group that holds Argentina's biggest bank, jumped 8.72 percent to 0.81 pesos per share.

* On the broad market equities volume was moderate at $12 million. Of active issues 50 advanced, 17 declined and 14 were unchanged.

* Prices for government bonds traded over-the-counter in Buenos Aires jumped 4.5 percent on average.

* The dollar-denominated 2038 Par ARPARD=RASL soared almost 11 percent to an ask price of 21.40.

* Volume was unusually heavy on the foreign exchange market as grains exporters brought in a flow of greenbacks, selling grains to take advantage of higher prices.

* The Central Bank intervened energetically to stop the peso from strengthening past 3.69 per dollar, traders said.

* Due to the intervention, in formal exchange between banks the peso weakened 0.07 percent to 3.6975/3.7000 per dollar ARS=RASL.

* In informal trade between foreign exchange houses, as measured by Reuters, the peso inched up 0.13 percent to end at 3.7250/3.7300 ARSB=. (Reporting by Jorge Otaola and Walter Bianchi, writing by Fiona Ortiz; Editing by Dan Grebler)