November 13, 2007 / 9:21 PM / 13 years ago

Argentine stocks get boost from Tenaris buy note

BUENOS AIRES, Nov 13 (Reuters) - Argentine stocks followed Wall Street higher on Tuesday, led by market heavyweight Tenaris after a buy recommendation from an Argentine brokerage, while government bonds crept higher in slow trade.

The MerVal index .MERV of the 25 leading stocks gained 1.4 percent to end at 2,305.23 points. Volume in the broad market was unusually robust at $86 million. Of active issues, 51 advanced, 35 declined and 15 were unchanged.

Market bellwether Tenaris TENA.BA, which makes steel products for the energy industry, rose 3.83 percent to 73.2 pesos per share in heavy trade, despite the steep slump in oil prices on international markets on Tuesday.

Tenaris’ share price has plunged since the company reported disappointing third-quarter earnings last week. But on Tuesday the Allaria Ledesma brokerage in Buenos Aires put a “buy” recommendation on the share, saying the price had reached an attractive level.

“With international markets in full recovery, the rise in the MerVal followed the rhythm of Tenaris, a share that has been harshly punished in recent weeks,” said Juan Diedrich, trader with Capital Markets Argentina brokerage.

On the domestic bond market, sovereign prices rose an average 0.4 percent, led by the dollar-denominated Par bond, which advanced 1.3 percent in over-the-counter trade.

The peso currency gave up 0.16 percent to close at 3.1600/3.1625 per U.S. dollar in informal trade between foreign exchange houses ARSB=, as measured by Reuters.

In formal interbank trade the peso also weakened 0.16 percent to 3.1325/3.1350 per dollar ARS=RASL. (Reporting by Jorge Otaola; Translated by Fiona Ortiz; Editing by Jonathan Oatis)

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