Argentina stocks track global gains, bonds advance

jueves 6 de diciembre de 2007 18:13 ART
 

BUENOS AIRES Dec 6 (Reuters) - Argentine stocks ended higher on Thursday for a second session, tracking Wall Street, while bonds got a lift from a higher-than-expected monthly inflation figure in Argentina, traders said.

The MerVal index .MERV of 25 leading stocks climbed 1.36 percent to 2,241.94 points.

Volume on the broad market was a thin $23.4 million. Among active issues, 47 rose, 26 fell and 16 ended unchanged.

Traders said stocks clocked strong gains after a U.S. mortgage relief plan eased investor concern of a credit crunch that could reduce capital flows to riskier emerging markets.

"The reaction to the U.S. mortgage rescue plan in international markets helped the (Argentine) bourse," said Ruben Pascuali, a trader at the Mayoral Bursatil brokerage.

"There are other factors influencing the MerVal's rebound such as expectations for an interest rate cut by the U.S. Federal Reserve and the swearing in of a new (Argentine) government," he added.

President-elect Cristina Fernandez de Kirchner takes office on Monday and the Fed meets next week.

The MerVal's gainers were led by petrochemical firm Indupa INU.BA, which rose 5.67 percent to 4.1 pesos per share and banking group Grupo Financiero Galicia GFG.BA, which rose 4.72 percent to 2.44 pesos per share.

Bond prices <AR/BONOS> traded flat for most of the session but closed with an average gain of 0.9 percent after the Argentine government reported a November inflation figure that was slightly higher than expected by the market.   Continuación...