Argentine bonds,stocks hit by reserves row tension

martes 12 de enero de 2010 13:59 ART

* Bonds slip as Central Bank tensions weigh

* Stocks fall on political row, global selling

* Peso inches higher in light trading

By Jorge Otaola

BUENOS AIRES, Jan 12 (Reuters) - Argentine bonds and stocks fell in midday trade on Tuesday due to persistent investor concern over a dispute at the Central Bank sparked by the government's plan to use reserves to pay debt.

Sovereign debt traded over the counter in Buenos Aires was down 0.7 percent on average, dragged down by dollar-denominated Boden bond due in 2014 ARBODEN14D=RASL, which was trading down 2.4 percent to an ask price of 32.00.

"There's no doubt that the conflict is already leading some investors to reshuffle their debt portfolios because they don't see a swift resolution to the reserves issue," said Hernan Labrone, an analyst at the Fenix Compania Financiera brokerage.

The same Argentine judge who blocked the government's reserves plan and ordered the reinstatement of the sacked Central Bank's chief, effectively extended the deadlock on Monday by turning the legal wrangle into an ordinary judicial case.   Continuación...