October 29, 2007 / 3:08 PM / 13 years ago

Argentine stocks end at record high after election

(Updates to close)

BUENOS AIRES, Oct 29 (Reuters) - Argentine stocks jumped to a record high on Monday following first lady Cristina Fernandez de Kirchner’s victory in Sunday’s presidential election.

The MerVal index .MERV of 25 leading stocks climbed 0.42 percent to 2,337.11 points, surpassing Friday’s previous all-time high of 3,327.15 points.

“Without any election surprises, the market is continuing to depend on the fortune of international markets. The election did not change investors’ preferences in the least,” said Claudio Szlaien, an analyst with Marlon Financial Resources.

Outstanding gainers included Brazilian state oil firm Petrobras APBR.BA, which was up 3.74 percent at 151 pesos per share, and electrical company Transener TRA.BA, which gained 2.56 percent to close at 2 pesos per share.

Trade volume totaled a moderate 104.6 million pesos ($32.7 million). Of active shares, 83 advanced, 28 declined, and 16 were unchanged.

Argentine debt <AR/BONOS> also rose 1 percent following Fernandez’s decisive first-round win, which had been expected. Traders said bonds rose on hopes she would pursue more market-friendly policies than her husband.

“Investors have a growing optimism about the possibility that she will introduce ... little by little, changes that improve the economic model,” said Roberto Drimer, an analyst at Argentine Research.

In the Buenos Aires market, Par bonds denominated in dollars jumped 1.2 percent, while peso-denominated Discount paper gained 0.9 percent.

The peso currency ARSB= firmed 0.55 percent to 3.1950/3.1975 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 strengthened by 0.48 percent to 3.1550/3.1575 per dollar ARS=RASL.

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