BUENOS AIRES, Nov 5 (Reuters) - Argentine stocks and bonds fell sharply on Monday in line with other global markets due to renewed concerns about U.S. credit losses in large international banks.
The MerVal index .MERV of 25 leading stocks fell 1.66 percent to end at 2,297.81 points.
“We followed the downward trend that was led by Wall Street,” said Jorge Alberti, an analyst at ElAccionista.com. “This volatility, and especially that of Chinese stocks, had a notable impact on the MerVal, what with the weakness of banking papers and (steelmaker) Tenaris because of its heavy weighting.”
Tenaris TENA.BATS.N was among the MerVal’s biggest losers, shedding 4.27 percent to 78.5 pesos per share, while bank Hipotecario BHI.BA slid 4.35 percent to 2.42 pesos per share.
Trade volume in Buenos Aires was a bulky 218.7 million pesos ($69.1 million). Of active shares, 62 declined, 26 advanced, and 13 were unchanged.
In the debt market, Argentine bonds <AR/BONOS> fell by 1.8 percent on average as the fears of a credit crunch turned investors away from riskier emerging market assets.
Among the biggest losers were the dollar-denominated Par bond, which slid 2.7 percent and dollar Discount paper, which fell 1.7 percent.
The peso currency ARSB= firmed 0.16 percent to end at 3.1625/3.165 per U.S. dollar in informal trade between foreign exchange houses, as measured by Reuters.
In formal interbank trade, where the central bank regularly intervenes to keep the peso steady, the currency weakened by just 0.08 percent to 3.13/3.1325 per dollar ARS=RASL. (Reporting by Walter Bianchi and Jorge Otaola; Translated by Helen Popper; Editing by James Dalgleish)