950805

Argentine stocks

sweep to year's

record close

BUENOS AIRES: Driven by carmakers, Argentine stocks rolled into uncharted territory for the year on a batch of positive news, dealers said.

"We're seeing some bold positioning by local banks, which after sitting on their cash are now returning to the capital markets," said Oscar Falleroni, head of a Banco de Galicia investment fund.

Blue chips jumped 2.2 percent to close at 487.75 on the MerVal index, their highest level since January 2. The former 482.69 peak this year was on January 2.

Stock watchers said news of a swelling trade surplus coupled with Argentina's smashing Eurbond issue this week and an impending tax moratorium cheered the market.

"There is a growing sense the departure of (tax chief Carlos) Tacchi will ease collection terms so as not to throttle industry," said broker Luis Corsiglia. "Carmakers in particular will get a breather if their long-standing debts are revised and their results pick up."

Car producers Sevel and Ciadea both rocketed 10 percent and traders said developments in Brazil could also be helping.

"Brazil has eased credit for vehicle purchases, with facilities now available for up to six months. This benefits our manufacturers," said Falleroni.

Traders also welcomed preliminary data showing Argentina posted a healthy $420 million trade surplus in July, against a year-earlier deficit of $334 million.-Reuter