Argentine shares soar

03 Oct, 2004

Argentine stocks rose again on Friday as investors bet the government would soon reach a successful deal on the restructuring of $100 billion in defaulted debt with creditors.
The MerVal share index rose 1.54 percent to 1,160.12 points and is now up over 5 percent this week. Trade volume was a heavy 103.9 million pesos ($34.8 million).
Among leading blue chips, major financial group Group Financiero Galicia rose 1.53 percent.
Stocks rose more than 20 percent in September and have gained about 8 percent so far this year - largely on hopes of an end to the debt impasse - after showing a loss of nearly 25 percent back in June.
Argentina on Thursday announced that the US Securities and Exchange Commission had given it clearance to proceed with the debt offer.
Some investors believe the government may announce small changes to sweeten the debt offer to ensure most creditors accept the deal.
"The confidence is due to expectations of a deal over the debt," said Ruben Pascuali, a trader at Mayoral brokerage.
The peso also closed stronger on debt hopes, rising 0.25 percent to 2.985/2.99 per dollar.

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