Argentine stocks rose on Friday to mark a record high for the second time this week, boosted by investor optimism on the government's planned restructuring of $100 billion in defaulted debt, traders said.
The MerVal index of 11 leading shares gained 0.49 percent to close at 1,287.14 points, topping the previous record close of 1,286.08 points from Wednesday. Stocks in Mexico and Chile also touched record levels. Argentina stocks rose nearly 13 percent in October and have gained 20 percent since January. Trading volume was moderate at 49.5 million pesos ($16.7 million). Argentina intends to swap some $40 billion in new bonds for the $100 billion in default since January 2002.
Local newspapers reported on Friday that Argentina plans to double the amount of interest it will pay bondholders upfront once the swap is concluded, by changing the planned nominal issue date of the new bonds to be swapped with old debt. The new bonds will carry an issue date of December 31, 2003 instead of June 30 of this year, meaning that the government will have to pay up to $1.15 billion in interest upfront.
The Argentine government may submit its formal debt restructure offer to the US Securities and Exchange Commission on Friday or Monday, local press reported.
The market's gains were led by Molinos Rio de la Plata, whose shares rose 3.7 percent to 4.22 pesos, one day after the company announced it had sold its vegetable oil operations in Russia and other former Soviet republics to Bunge Ltd, the world's top oilseed processor.