Argentine bonds jump, stocks hit 7-month high
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: Cotización), 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)
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