Argentine stocks closed lower on Friday as investors pocketed profits from recent gains, while bonds rose as traders bet the US Federal Reserve will cut interest rates in the United States. The MerVal index of 25 leading stocks retreated 1.35 percent to 2,206.01 points, accumulating a 6.18 percent loss for the month.
Volume on the broad market was a moderate $38.2 million. Among active issues, 32 rose, 40 fell and 17 ended unchanged. "The market started high, pushed up by external markets, but never consolidated," said Ricardo Maied, a trader at Federal Bursatil brokerage. Energy group Transportadora de Gas del Sur led losers, falling 6.94 percent to 3.62 pesos.
Bond prices in Argentina rose by 1.5 percent on average as investors continued to hope the US Federal Reserve will trim interest rates. Leading the gainers was the Disc bond denominated in pesos, which jumped 2.1 percent in over-the-counter trade. Expectations for a cut in US interest rates lift assets in riskier emerging markets, drawing capital in search of higher returns.
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