Argentine bonds, stocks rally after Kirchner death

jueves 28 de octubre de 2010 18:00 ART

* Stocks .MERV up 0.95 percent, peso slightly weaker

* Locally traded bonds rise an average 2.0 percent (Updates to close)

By Jorge Otaola and Walter Bianchi

BUENOS AIRES, Oct 28 (Reuters) - Argentine bonds and stocks rose on Thursday, spurred by investor confidence that the death of former President Nestor Kirchner could herald an era of more market-friendly economic policies.

For more on Kirchner see [ID:nN28110442].

Kirchner died of a heart attack on Wednesday when local financial markets were closed for a national holiday, but Argentine assets abroad soared on news of his sudden departure.

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

"With Kirchner's death, a whole range of political possibilities opens up," said Mariano Tavelli, a trader at the Tavelli & Co brokerage in Buenos Aires.

Locally traded Argentine bonds RPLATC closed up 3.0 percent on average in over-the-counter trade after rising as much as 4.0 percent earlier in the session.   Continuación...