Argentina's Bonds, GDP Warrants Extend Recovery

--Bonds, GDP Warrants extend recovery

--Stocks close higher in minimal volume trading

--Peso little changed

 
   By Taos Turner 
 

BUENOS AIRES--Argentine bonds and GDP warrants extended their recovery on Monday and stocks rose a bit as local assets got a bounce from international markets.

"We accompanied the rise in global markets today," said Adrian Mayoral, a trader at his family's brokerage. "We saw bonds and GDP warrants rebound and what happened abroad helped with that. But we're talking about a very small market here."

The Bonar X bond rose 2.15% to ARS533.75.

The TVPA GDP warrant rose 3.16% to ARS81.50; the TVPP rose 2.07% to ARS15.06; the TVPY rose 2.74% to ARS82.60.

The Merval index edged 0.2% higher to 2405.08 on volume totaling ARS21 million ($4.4 million).

Banco Macro (BMA.BA, BMA) led the gainers, rising 2.75% to ARS8.94, while Petrobras Argentina Petrobras Argentina SA (PESA.BA, PZE), the local unit of Brazil's Petroleo Brasileiro SA (PBR), led decliners, falling 2.45% to ARS2.78.

The most traded shares belonged to financial conglomerate Grupo Financiero Galicia SA (GGAL.BA, GGAL), which rose 0.83% to ARS3.61, and steel producer Tenaris (TS, TEN.MI), which fell 0.23% to ARS125.

"Everything is undervalued not because of the economic situation but because of the political situation, and this is especially true as we get ready to enter an election year," Mr. Mayoral said. "The market's volume gives us an indication of where investors are right now. Everything is very cheap. But I don't see changes on the horizon that could attract capital. It's going to be hard to get out of this political-economic enigma that is Argentina."

The peso closed at ARS4.7265 to the U.S. dollar on the MAE foreign-exchange wholesale market, compared with ARS4.7230 in the previous session. On the black market, Argentines were paying between ARS6.20 and ARS6.21 for a dollar, according to financial newspaper El Cronista.

Write to Taos Turner at [e-mail]