Senate Action Boosts Stocks
April 27, 2011
The Merval Index of leading shares rose 16.79 to 516.66, after declining 0.53 Wednesday. The broad General Index gained 428.35 to 15989. The gains were broad-based with advancing issues outnumbering decliners, 47 to seven, while seven shares settled the session unchanged. Volume in floor trading totaled 23.55 million pesos, while volume in the computer-based continuous market reached 72.04 million pesos. The local media have reported a largely negative public reaction to the measures. And analysts say the market, concerned about their possible recessionary effect on consumption and a consequent drop in corporate earnings, responded by driving the leading Merval Index 9.6% lower over the last week. But relief came late Wednesday in the form of a reassuring letter from the International Monetary Fund, which said the measures ``provide renewed and welcome proof'' that Argentine authorities will maintain and build on the country's economic plan. Analysts said early Thursday morning Senate action to approve a privatization bill for two hydroelectric projects also encouraged the market the Congress won't be an obstacle on the road to reform. Lower house action is still required on the hydroelectric privatization measure. All the most active issues ended on the up side. Telefonica outperformed the market gaining 9 Argentine cents to 2.34 pesos. Telecom advanced 10 Argentine cents to 3.80 pesos. The two big energy companies occupied their customary positions at the top of the most active list. Perez Companc advanced 14 Argentina cents to 5.56 pesos and YPF added half a peso to 22.15 pesos. Astra gained 2 Argentine cents to 1.40 pesos. Property developer IRSA, which saw relatively lively trading Thursday, added 2 Argentine cents to 2.90 pesos. Petrochemical producer Indupa gained 2.1 Argentine cents to 39.4 cents. The other big winner among active issues was BanSud, which gained 75 Argentine cents to 9.45 pesos.
