November 8, 2007 / 9:04 PM / in 13 years

Argentine stocks hurt by Tenaris losses, bonds fall

BUENOS AIRES, Nov 8 (Reuters) - Argentine stocks closed with significant losses on Thursday, mirroring other global markets and dragged down by steelmaker and market heavyweight Tenaris, while bonds also fell, traders said.

The MerVal index .MERV of 25 leading stocks ended down 1.55 percent at 2,263.02 points as investors dumped riskier emerging market assets on ongoing fears about the fallout from the U.S. credit crunch in mortgage markets.

That was aggravated by Tenaris TENA.BA(TS.N) losses triggered by the company’s lower-than-expected third-quarter net profit. Shares in Tenaris, the world’s top producer of seamless steel tubes for the energy industry, fell 5.06 percent to 75 pesos per share in Buenos Aires.

“The MerVal remains down due to the negative global context, which was aggravated by a string of bad company results, like Tenaris’s,” said Dionisio Corneille, a trader at a brokerage that bears his name.

Trade volume on the broad market was a bulky 194.8 million pesos ($61.7 million).

In the debt market, Argentine bonds <AR/BONOS> slumped by 2.5 percent on average as investors looked for less risky investments.

The biggest losers included dollar-dominated Par paper, which fell 3.4 percent, and peso-denominated Discount bonds, which ended down 3.1 percent.

The peso currency ARSB= firmed 0.16 percent to end at 3.155/3.1575 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 0.16 percent to 3.13/3.1325 per dollar ARS=RASL. (Reporting by Walter Bianchi; Translated by Helen Popper; Editing by Neil Stempleman)

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