Argentine bonds, stocks rally after Kirchner death

jueves 28 de octubre de 2010 12:29 ART
 

* Stocks .MERV open up 1.1 percent, peso dips

* Locally traded bonds rise an average 4.0 percent

By Jorge Otaola and Walter Bianchi

BUENOS AIRES, Oct 28 (Reuters) - Argentine bonds and stocks rose in opening trade on Thursday, boosted by investor confidence a day after the death of former President Nestor Kirchner.

For more on Kirchner see [ID:nN28110442].

Investors had disliked the unorthodox economic policies of Kirchner, who was a key power broker in the current government of his wife, President Cristina Fernandez, and who had been expected to run for a second term in October 2011 elections.

"The rise in stocks and bonds reflects expectations for a shift to economic policies that are more closely aligned with the markets," said Roberto Drimer, an analyst for VaTnet Financial Research.

Locally traded Argentine bonds <AR/BONOS> rose 4.0 percent on average in opening trade. Among the biggest gainers was the dollar-denominated Disc ARDISCD=RASL, which rose 6.2 percent to an ask price of 94.60.

Argentina's portion of the JP Morgan EMBI Plus sovereign bond index 11EMJ widened 2 basis points to 535 basis points, after reaching its tightest in 31 months earlier in the session. The index overall was 1 basis point tighter.   Continuación...