960412

Madrid stocks

gain strongly

with bonds

MADRID: Stock prices in Madrid ended sharply higher, boosted by bonds which were helped in turn by the idea a political pact of home was close at hand and by the strength of US Treasuries, dealers said.

"The improvement in bonds has prompted buying in the stock market where the tone is pretty positive. Next week we might consolidate the new maximum we reached on Friday", a trader said.

General index finished 2.21 points higher at 347.02.

Ibex-35 rose 29.40 to 3,918.12.

Popular Party leader Jose Maria Aznar met King Juan Carlos on Friday to discuss forming a government in the wake of the March 3 general election which left him 20 seats short of a majority.

He needs the guarantee of support from the Catalan nationalists before he can win an investiture vote but the fact he is now talking openly about ceding control of a greater proportion of tax revenues to the regions fuelled expectations that a pact was in the offing.

Greater tax autonomy is one of the Catalans' main demands.-Reuter