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Argentine bonds post big gains and stocks hit new record

Friday, October 29th 2010 - 04:06 UTC
Full article 10 comments
Investors are betting on a more business friendly environment following the death of Mr. Kirchner Investors are betting on a more business friendly environment following the death of Mr. Kirchner

Argentine bonds posted big gains and stocks hit a new record high Thursday as markets anticipated a more business-friendly environment following the death of former president Nestor Kirchner.

While presidents from across the region and supporters filed past Kirchner's coffin to pay their last respects, Argentina's Merval Index of leading shares topped a new record, rising 1.17% to 2954.86 points.

The gains were led by power and gas providers amid speculation that the government of President Cristina Fernandez, Kirchner's wife, may consider easing rate controls following his death.

Power distributors Edenor (EDN, EDN.BA) shot up 5.82% to ARS 2 ($0.50), while Transener (TRAN.BA) jumped 4.31% to ARS1.21

Many political analysts had expected Nestor Kirchner to run in the October 2011 presidential election as a way for the husband-and-wife team to alternate in power and avoid constitutional restrictions on term limits.

Besides stocks, investors also snapped up Argentina's sovereign debt amid the positive sentiment. The federal government's benchmark peso-denominated 2033 discount bond surged 10.36% to ARS175.25, yielding 7.65%.

Meanwhile, the Global 2017 bond, issued in June as part of the government's debt swap with the holders of defaulted bonds, was 2.41% higher at ARS425, yielding 8.18%.

The Boden 2015, considered a good proxy for measuring the appeal of newly issued government bonds or the government's ability to sell them, closed 2.17% higher at ARS376.49, yielding 8.56%.

Top Comments

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  • Hoytred

    The King is dead, long live the ............ ?

    Oct 29th, 2010 - 04:20 am 0
  • Fido Dido

    “investors also snapped up Argentina's sovereign debt....”

    Hmmm, interesting, looks like they are betting for a repeat but with different players and similar schemes to get the money back. Investors are betting that Cristina will lose the elections and the the new guy ( neo-liberals like Daniel Scioli, duhalde or macri) will pose austerity measures on the argentine people (no more free schools, free health care, free this and that, but don't worry, everything will be fine) to pay off their friends in and outside the country, and just push the bill on the Argentine people. Sounds familiar? Looks like a party (Bread and Circuses) has just begun in Argentina..again.

    Oct 29th, 2010 - 06:25 am 0
  • Think

    03:30 In Buenos Aires......

    More than 100.00 persons have already said good-bye to their former president......
    Long live the President
    Long live the People
    F*** the Market

    Oct 29th, 2010 - 06:27 am 0
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