RPT-Argentina stocks rally, but bonds and peso sag

martes 28 de octubre de 2008 20:17 ARST

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BUENOS AIRES Oct 28 (Reuters) - Argentine stocks soared on Tuesday, lifted by a rally in global markets, but bonds sank for a 10th straight session and the currency dipped to its weakest level in six years.

The MerVal index of leading stocks rose 6.58 percent to close at 895.06 points after closing a day earlier at a five-year low. Gains were led by energy-related shares, including index heavyweight Tenaris (TENA.BA: Cotización) (TS.N: Cotización) and Petrobras APBR.BA (PETR4.SA: Cotización).

Regional markets, including Brazil's Bovespa index .BVSP, were boosted by a rally on Wall Street that fueled demand for emerging market securities.

"Thanks to Tenaris and Petrobras, the MerVal joined the other international markets in the euphoria," said Claudio Szlaien, an analyst at Marlon Recursos Financieros brokerage.

A government plan to nationalize Argentina's private pension funds continued to weigh on Argentine bonds and the peso currency.

Sovereign bonds traded on the local over-the-counter market dropped an average 1.5 percent in afternoon trade, accumulating a 41.8 percent drop over the last 10 sessions and shedding 61 percent in the month of October.

The peso slipped 2.12 percent to 3.3750/3.3700 ARS=RASL per U.S. dollar in the formal interbank market, the weakest level since an economic crisis and devaluation in 2002.

In informal trade between foreign exchange houses, as measured by Reuters, the peso shed 1.62 percent at 3.445/3.45 per dollar ARSB=.   Continuación...