Argentine stocks climb

20 Aug, 2006

Argentine stocks closed higher on Friday as investors took up positions in blue chips a day after the expiration of futures options, traders said. The MerVal index of 12 leading shares rose 1,6 percent to 1,655.87 points, reducing its losses for the month to 2.69 percent.
Still, the MerVal has risen 7.29 percent in the year-to-date. "The expiry of the options freed up the market, and buying orders from investment funds looking to reshuffle their portfolios pushed the market up," said Mariano Tavelli, a trader at Tavelli Julio brokerage.
The options, which expired on Thursday, are bimonthly operations involving the buying and selling of shares with quantities and prices set in advance. Their expiration influences the market because the holders have to meet the agreed obligations.
Trade volume was a moderate 51.9 million pesos ($16.8 million) Banco Frances rose 4.85 percent to 8.0 pesos and Argentina's Telecom closed 2.27 percent higher to 7.7 pesos.
On the foreign exchange market, the Argentine peso strengthened slightly, rising 0.08 percent to close at 3.0925/3.095 to the dollar as the central bank maintained its regular intervention to keep the currency weak and stimulate exports, traders said.

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