Argentine bonds rise on govt buying, stocks gain

jueves 7 de mayo de 2009 18:07 ART
 

BUENOS AIRES May 7 (Reuters) - Argentina's stock, currency and bond market trends on Thursday.

* Prices for government bonds traded over-the-counter in Buenos Aires rose an average 2.7 percent, accumulating a 14.3 percent rise so far this week. Traders said the treasury and the state pension system were buying through state banks.

* Traders said the government is buying up sovereign bonds now to take advantage of a low price cycle before it ends as demand for high-risk instruments is rising due to hints that the global recession might be ending.

* Bond prices are also rising because investors speculate the government will try to mend its troubled relations with the International Monetary Fund after mid-term elections in June, with a view to seeking financing that will help it meet rising debt obligations this year and next, said Leopoldo Olivari, trader with Bacque Sociedad de Bolsa.

* The 2038 Par bond denominated in pesos ARPARP=RASL rose almost 7 percent to an ask price of 20.

* The MerVal stocks index .MERV rose for a sixth consecutive session to a fresh 7-month high, in brisk volume, led by bank shares that get a boost when Argentine government debt prices rise because they hold a lot of those bonds. The index gained 0.99 percent to 1,423.92.

* Banco Macro (BMA.BA: Cotización) jumped 7.38 percent to 5.38 pesos per share.

* On the broad market, equities volume was high at $19 million. Of active issues 43 advanced, 24 declined and 12 were unchanged.

* In formal exchange between banks the peso weakened by 0.27 percent to 3.7200/3.7225 per dollar ARS=RASL, as the Central Bank purchased dollars to counteract the regional trend of currencies strengthening against the dollar.

* In informal trade between foreign exchange houses, as measured by Reuters, the peso slipped 0.27 percent to end at 3.7400/3.7450 ARSB=. (Reporting by Jorge Otaola and Walter Bianchi, writing by Fiona Ortiz; Editing by Dan Grebler)