June 12, 2008 / 9:09 PM / 10 years ago

Argentina stocks fall after Dow flattens, bonds dip

BUENOS AIRES, June 12 (Reuters) - Argentine stocks fell on Thursday for the fifth straight session, reversing gains after Wall Street’s rise was tempered, while bonds slipped and the peso ended mixed.

The benchmark MerVal stocks index .MERV dipped 0.74 percent to end at 2,056.69 points, accumulating a loss of more than 6 percent since last Thursday.

Gains on the Dow Jones industrial average .DJI were slashed late in the session to 0.06 percent due to a steep drop in shares of Yahoo Inc YHOO.O, but the index eventually recovered to close up 0.48 percent.

“The MerVal reversed (initial gains) in line with the volatility in external markets,” said Horacio Corneille, a trader at a brokerage that bears his name.

The session’s losses were led by local bank Banco Hipotecario (BHI.BA), which shed 4.76 percent to end at 1.0 peso a share.

On Argentina’s broad market, volume was moderate at around $38.6 million. Of active issues, 28 advanced, 51 declined and 17 were unchanged.

Government debt traded locally fell an average 0.5 percent as institutional investors sold their holdings amid continued uncertainty over a three-month-old standoff between the government and farmers.

The peso-denominated Par bond shed 1.7 percent in over-the-counter trade to rank among the day’s biggest losers.

Meanwhile, the Argentine peso closed mixed. In formal interbank trade, the peso strengthened 0.25 percent to 3.0500/3.0525 per dollar ARS=RASL, with private investors selling dollars on the expectation the peso will continue to firm, traders said.

In informal trade between foreign exchange houses, as measured by Reuters, the peso slipped 0.08 percent to 3.1275/3.1300 per dollar ARSB=. (Reporting by Jorge Otaola and Walter Bianchi; Writing by Hilary Burke; Editing by Diane Craft)

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