November 24, 2008 / 9:47 PM / 12 years ago

Argentine stocks jump amid global market surge

(Recasts with closing prices; adds peso, bond prices)

BUENOS AIRES, Nov 24 (Reuters) - Argentine stocks ended up a whopping 8.79 percent on Monday, buoyed by a global market upswing after the U.S. government unveiled a plan to rescue banking giant Citigroup (C.N).

The benchmark MerVal index .MERV closed higher at 901.91 points snapping a five-session losing streak, during which blue-chip stocks shed 19 percent of their value. Monday’s rise was the biggest one-day jump since Oct. 14.

“The global market gains spurred by the bailout of Citigroup helped extend the MerVal’s strong rebound, particularly in energy-related shares,” said Claudio Szlaien, an analyst at Marlon Recursos Financieros.

Shares in Brazil’s Petrobras APBR.BA (PETR4.SA) jumped 19.2 percent to 34.10 pesos a share in Buenos Aires, while Tenaris TENA.BA (TS.N), a maker of steel tubes for the energy industry, gained 18.4 percent to end at 34.65 pesos.

The two companies make up nearly one-third of the MerVal index.

On the broad market, volume was a modest $23 million. Of active issues, 35 advanced, 20 declined and 11 were unchanged.

Meanwhile, locally traded government bonds rose 3.1 percent on average in over-the-counter trade, according to the ask price, with peso-denominated 2038 Par bonds ARPARP=RASL helping to drive gains.

On the foreign exchange market, the peso weakened just 0.08 percent against the dollar to 3.3350/3.3375 ARS=RASL in formal interbank trade. The currency held steady at 3.3725/3.3775 per dollar ARSB= in informal trade between foreign exchange houses, as measured by Reuters. (Reporting by Jorge Otaola; Writing by Hilary Burke; Editing by Theodore d’Afflisio)

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