Argentina's stock, bond and currency market trends on Friday. Prices for government bonds traded over-the-counter in Buenos Aires gained 3.3 percent on average, rising for a fourth consecutive day as investor appetite for risk increased. The 2014 Boden bonds denominated in dollars jumped 4.7 percent to an ask price of 15.60.
Argentina's debt spreads narrowed 100 basis points to 954 basis points over comparable US Treasuries, according to J.P. Morgan's, reaching their lowest value since October 2008. They hit a historic low of 180 basis points in early 2007.
Investors were eager to find out the results of an auction to receive an early payment on the August coupon of dollar-denominated Boden 2012 bonds. Participants had until Friday at 1700 GMT to specify the discount they would be willing to accept in the deal. The Boden 2012 auction was aimed at showing the government's ability and willingness to pay its debt. The MerVal stocks index dipped 0.89 percent to 1,654.56 points as investors took profits after three straight sessions of gains and as crude oil prices fell.
The index is up 53 percent since the start of the year. Shares in Tenaris, which makes steel pipes for the energy industry and is weighted as almost half of the MerVal, shed 1.8 percent to 60.00 pesos per share. On the broad stock market, volume was weak at $9.8 million. Of active issues, 38 advanced, 29 declined and 9 were unchanged.
In formal exchange between banks, the peso ended 0.13 percent weaker at 3.7625/3.7650 per dollar amid private demand for greenbacks ahead of a June 28 mid-term election, in trade closely monitored by the central bank. In informal trade between foreign exchange houses, as measured by Reuters, the peso weakened 0.2 percent to 3.84/3.8450. Argentina's financial markets will be closed on Monday in observance of a national holiday.
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