Argentine stocks plunge

30 Sep, 2007

Argentine stocks dipped slightly on Friday as investors rearranged their portfolios as the month came to a close, traders said. The benchmark MerVal index, the composition of which will change on Monday based on trading volume in shares, slipped 0.2 percent to end at 2,187.97 points.
"Profit-taking was also related to ups and downs on external markets, but the session was very linked to portfolio adjustments ahead of the new MerVal composition," said Francisco Marra, a trader at Bull Market Brokers.
Volume on Argentina's broad market was a hefty 138.4 million pesos ($43.3 million), significantly lower than the previous session's 12-year high of 303.5 million pesos but above average trading levels in recent months. Of active issues, 52 advanced, 31 declined and 5 were unchanged.
Telecommunications firm Telecom Argentina fell 3.99 percent to 15.65 pesos per share, while BBVA Banco Frances lost 2.65 percent to close at 9.2 pesos per share. Meanwhile, bond prices on the local market dropped 1.3 percent on average as investors took profits from recent gains and kept a cautious eye on the health of the US economy.
Leading losses, peso-denominated Discount bonds dropped 1.0 percent and Boden 2014 bonds lost 1.9 percent in over-the-counter trade. On the foreign exchange market, the peso gained 0.08 percent to close at 3.1925/3.1950 per US dollar in trade between foreign exchange houses, as measured by Reuters.

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