Argentine stocks dip, peso and bonds rise

lunes 10 de noviembre de 2008 18:47 ARST

BUENOS AIRES Nov 10 (Reuters) - Argentine stocks closed down after turning negative in the afternoon under the influence of Wall Street, while bonds and the peso rose in light trade where government trades set the trend.

The MerVal index .MERV slid 0.97 percent to 1,085.87 points. Volume on the broad market was sturdy at $35 million with 14 issues advancing, 37 declining and 13 unchanged.

Pampa Energia PAM.BA, which generates, distributes and transmits energy, was one of the session's biggest percentage losers, down 3.6 percent to 0.8 pesos per share. Pampa is weighted 9 percent of the MerVal.

"The MerVal's adjustment just validated that the market isn't ready for anything big... The need for liquidity reigns and that goes against any evolution on the bourse," said Leopoldo Olivari, trader at Bacque brokerage.

In local trade, government bonds rose an average 1.4 percent in low volume, accumulating a 9 percent rise in November after a punishing October.

The dollar-denominated 2038 Disc bound ARDISCD=RASL rose 3 percent to an ask price of 30.40. The dollar-denominated 2033 Par bond ARPARD=RASL also rose 3 percent to 18.80 percent.

"Government banks bought assets creating a virtual floor for their prices and that sets the stage for some speculative sales," said a trader.

In the foreign exchange market, the peso strengthened in low volume.

In formal interbank trade the peso inched up 0.15 percent to close at 3.2975/3.3000 per dollar ARS=RASL. In trade between foreign exchange houses, as measured by Reuters, the peso climbed 0.75 percent to 3.3100/3.3200 per dollar ARSB=. (Reporting by Jorge Otaola and Walter Bianchi, writing by Fiona Ortiz)