BUENOS AIRES (Dow Jones)–Argentine stocks closed lower Tuesday as hopes waned for a big solution to Europe’s debt crisis and U.S. stocks tumbled, but local bonds gained ground.
Argentina’s benchmark Merval stock index ticked 0.4% lower to close at 2,850.53 points. Trading volume came in at a moderate 64 million pesos ($15 million).
Stocks in the U.S. fell after a Wednesday meeting of EU finance ministers was canceled, although a scheduled summit among European leaders seeking a way out of the debt crisis is still planned.
The Global X FTSE Argentina 20 ETF, which tracks shares of Argentine companies listed on international markets, fell 0.9%, to $11.07 in New York.
Leading the losses in Buenos Aires was Banco Macro SA (BMA, BMA.BA), which shed 3.5% to close at ARS11, giving up all of its gains posted Monday.
Food company Molinos Rio de la Plata SA (MOLI.BA) bucked the trend, adding 3.3% to close at ARS31.40.
Bonds did well Tuesday as investors were tempted by their high yields. The peso-denominated 2018 Bogar bond rose 0.5% in price terms to ARS208.99, with the yield at 12.84%. However, the peso-denominated 2035 GDP warrant eased 0.16% to ARS15.88 amid heavy trade of ARS107 million.
The peso edged slightly higher to ARS4.2355 to the U.S. dollar on Argentina’s MAE foreign-exchange wholesale market, compared to ARS4.2360.
-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738; shane.romig@dowjones.com
Source: /online.wsj.com