Argentina's benchmark MerVal share index .MERV closed up 1.71 percent at 3,270.78 points on Monday, as banking stocks rose on speculation of a possible deal to repay the government's $6.5 billion debt with the Paris Club. Banco Macro BMA.BA rose 4.59 percent to 20.5 pesos per share. Speculation that a deal on the defaulted debt may be close mounted last week. Argentine bond prices have risen on expectation of a Paris Club deal in recent sessions, but they fell on Monday. Local banks are major holders of sovereign bonds.
Editing by Kenneth Barry