March 20, 2009 / 9:23 PM / 11 years ago

Argentina bonds, peso, stocks hurt by farm conflict

BUENOS AIRES, March 20 (Reuters) - Argentina’s stock, currency and bond market trends on Friday.

* MerVal stocks index .MERV dipped 0.85 percent to 1,069.53 points, following Wall Street lower and affected by a political standoff between farmers and the government.

* Locally traded shares of index heavyweight Tenaris TENA.BA, which makes steel pipes for the energy industry, fell 0.67 percent to 36.90 pesos.

* Tenaris and Brazilian energy firm Petrobras were hurt by profit-taking that started overseas, while “the rest of the market is still pressured by the distrust linked to politically motivated losses in the bond market,” said Ruben Pascuali, a trader at Mayoral Bursatil,

* On the broad market, volume was a weak $12.1 million. Of active issues, 28 advanced, 45 declined and 16 were unchanged.

* Farmers’ renewed anti-government protests have increased political uncertainties, along with the government’s bid to move up congressional elections by four months to late June.

* After the markets closed, leaders of the country’s four biggest farm groups announced a week-long commercial strike.

* Argentine bonds shed 1.7 percent on average in local over-the-counter trade, hit by the farmer protests against a new government plan to share revenue from controversial soy export taxes with the provinces.

* The dollar-denominated 2012 Boden bond ARBODEN12D=RASL sank 4.9 percent, according to the ask price.

* “These prices are just referential since there’s very little trade. The problem with the farm sector is getting worse and this has moved to the market,” a debt trader said.

* In formal exchange between banks, the peso slumped 0.21 percent to 3.6550/3.6575 per dollar ARS=RASL, also hurt by the reignited farm conflict.

* In informal trade between foreign exchange houses, as measured by Reuters, the peso weakened 0.20 percent to 3.7475/3.7525 ARSB=. (Reporting by Jorge Otaola and Walter Bianchi; Writing by Hilary Burke; Editing by Dan Grebler)

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