--Bonds, GDP Warrants extend recovery
--Stocks close higher in minimal volume trading
--Peso little changed
By Taos Turner
BUENOS AIRES--Argentine bonds and GDP warrants extended their
recovery on Monday and stocks rose a bit as local assets got a
bounce from international markets.
"We accompanied the rise in global markets today," said Adrian
Mayoral, a trader at his family's brokerage. "We saw bonds and GDP
warrants rebound and what happened abroad helped with that. But
we're talking about a very small market here."
The Bonar X bond rose 2.15% to ARS533.75.
The TVPA GDP warrant rose 3.16% to ARS81.50; the TVPP rose 2.07%
to ARS15.06; the TVPY rose 2.74% to ARS82.60.
The Merval index edged 0.2% higher to 2405.08 on volume totaling
ARS21 million ($4.4 million).
Banco Macro (BMA.BA, BMA) led the gainers, rising 2.75% to
ARS8.94, while Petrobras Argentina Petrobras Argentina SA (PESA.BA,
PZE), the local unit of Brazil's Petroleo Brasileiro SA (PBR), led
decliners, falling 2.45% to ARS2.78.
The most traded shares belonged to financial conglomerate Grupo
Financiero Galicia SA (GGAL.BA, GGAL), which rose 0.83% to ARS3.61,
and steel producer Tenaris (TS, TEN.MI), which fell 0.23% to
ARS125.
"Everything is undervalued not because of the economic situation
but because of the political situation, and this is especially true
as we get ready to enter an election year," Mr. Mayoral said. "The
market's volume gives us an indication of where investors are right
now. Everything is very cheap. But I don't see changes on the
horizon that could attract capital. It's going to be hard to get
out of this political-economic enigma that is Argentina."
The peso closed at ARS4.7265 to the U.S. dollar on the MAE
foreign-exchange wholesale market, compared with ARS4.7230 in the
previous session. On the black market, Argentines were paying
between ARS6.20 and ARS6.21 for a dollar, according to financial
newspaper El Cronista.
Write to Taos Turner at taos.turner@dowjones.com