ARGENTINA: Merval Rises 0.61% Underpinned By Petrobras Brasil

Merval, the benchmark Argentinean stock market index, gained 0.61%, closing at 22,262.64 points, boosted by rising oil prices after data showed a decrease in US inventories.

Petrobras Brasil increased by 4.61% in Buenos Aires after news that Brazilian former President Luiz Inacio Lula da Silva was sentenced to 9 years in prison for corruption.

Marcos Forquera, an analyst at Buenos Aires Valores, said that the stock market had a positive start today, but profit-taking hit a few shares, leading to a weaker rise at the end of the day.

He warned that Merval is near its record high and that market uncertainty is on the rise ahead of the October legislative elections in Argentina, increasing the odds of a sharp correction in the Buenos Aires Stock Exchange.

Meanwhile, the locally traded US dollar fell by 0.30%, to 16.94 Argentinean pesos. According to Fernando Izzo, an analyst at ABC Mercado de Cambio, the decline was a result of lower demand for the greenback and dollar sales from grain exporters.

News are provided by InstaForex