Argentine stocks, bonds slip on investor risk aversion

miércoles 8 de octubre de 2008 18:05 ART

(Updates with closing prices)

BUENOS AIRES Oct 8 (Reuters) - Argentine bonds and stocks fell on Wednesday as investors dumped riskier assets due to the global financial crisis, while the peso ended firmer as central bank dollar sales managed to reverse its downward trend.

The MerVal index of leading shares .MERV closed down 1.82 percent at 1,359.27, its fifth consecutive session of losses.

"In Buenos Aires, we're seeing prices that reflect investor panic and not the true value of the companies," said Francisco Marra, a trader at Bull Markets Brokers.

Index heavyweight Tenaris TENA.BA, the world's top producer of seamless steel tubes for the energy industry, dragged down the MerVal with a loss of 1.81 percent to 46 pesos per share.

Volume on the broad market was a moderate $36 million.

The peso ended firmer against the dollar as central bank sales of dollars helped reverse the market trend. For most of the session, the peso weakened as local savers and companies opted for safe-haven dollars.

In informal trade between foreign exchange houses, as measured by Reuters, the peso firmed 0.61 percent to end at 3.29/3.30 per U.S. dollar ARSB= after dipping to 3.42 per dollar earlier in the session.

The peso had weakened for the four previous sessions, shedding 2.39 percent on Tuesday.   Continuación...