Argentina stocks slip on US market woes, bonds up

jueves 11 de octubre de 2007 18:58 ART
 

BUENOS AIRES Oct 11 (Reuters) - Argentine stocks fell for a second session on Thursday, as losses on the Dow Jones industrial average weighed down on regional markets, traders said.

The MerVal index .MERV of 25 leading stocks fell 1.34 percent to close at 2,246.85 points. It had traded up 0.94 percent at 2,298.7 points earlier in the session, close to the all-time high of 2,303.43 points touched in July.

"Today was a crazy day for the markets. The overwhelming majority changed direction in the afternoon because were tied to economic data from the United States and the poor performance of U.S. technology companies," said Juan Diedrich, and analyst with Capital Markets Argentina.

"(Argentina's) market showed signs of fatigue because it didn't rise enough to offset external markets' impact," he added.

On the broad market, volume was a heavy 147.7 million pesos ($46.2 million). Among active issues, 38 advanced, 60 declined and 15 were unchanged.

Losses were led by Banco Frances (FRA.BA: Cotización), which dropped 4.39 percent to 9.8 pesos per share, and power company Central Puerto CEP.BA, which slid 3.7 percent to 5.2 pesos per share.

Argentine sovereign debt <AR/BONOS> closed up 1.2 percent on average in a market buoyed by expectations of another cut in U.S. interest rates.

Dollar-denominated Par bonds rose 2.3 percent, while dollar-denominated Discount paper clocked up a gain of 1.8 percent.

The Argentine peso ended flat in a session marked by central bank intervention to keep the local currency steady.

In trade between foreign exchange houses as measured by Reuters, the peso was unchanged at 3.1975/3.2 per U.S. dollar ARSB=. In formal interbank trade, where the central bank routinely intervenes, it was also flat at 3.1525/3.155 per dollar ARS=RASL.