Argentine stocks, bonds weaker on central bank row

miércoles 27 de enero de 2010 18:32 ART

* Stocks, bonds, peso weaker on central bank tension

* Investors waiting for Congress commission to conclude

* Cenbank's Redrado addresses commission (Updates with closing prices)

BUENOS AIRES, Jan 27 (Reuters) - Argentine financial markets closed lower on Wednesday in light trade due to investor caution over an ongoing dispute between the president and the head of the central bank.

A special congressional commission is debating President Cristina Fernandez's decision to fire Central Bank chief Martin Redrado for blocking her order to use $6.6 billion in foreign currency reserves to repay debt.

Redrado went to Congress on Wednesday afternoon to address the commission. Investors are waiting for the commission to give its opinion, which though non-binding, could signal an end to the leadership crisis at the bank. For details see [ID:nN26106007]

"Political issues continue to affect the market and this is seen through the light volume even though most people assume that Redrado won't go back to the Central Bank," one trader said.

The benchmark MerVal .MERV stocks index fell 0.13 percent to 2,306.21 for a sixth straight loss.

Among the biggest losers was Telecom Argentina (TEC2.BA: Cotización) which closed down 2.7 percent to 12.55 pesos per share due to uncertainty about the company's future.   Continuación...