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Argentine stocks close

at 10-week high

BUENOS AIRES: Despite thinner turnover, Argentine stocks Monday continued their strong move to the upside in anticipation of economic recovery, closing at a 10-week high.

"It's been five days of straight gains now and people are talking of a trend, not a rebound", said Alejandro Pretti of Wainbuch traders. "It seems we're free of resistance in the near-term".

The blue-chip MerVal index (.MERV) advanced 1.2 percent to end at 529.99, extending gains since last Tuesday to 6.0 percent.

Traders were also awaiting a news conference Tuesday evening when Economy Minister Domingo Cavallo emerges from a two-day "spiritual retreat" with the rest of his team.

"The market loves these retreats where Cavallo's team drums up optimism over the pace of economic recovery", said Pretti.

The market snapped back from a long slumber last week on a rise in car sales, energy consumption and job postings.

Analysts expect a successful outcome Tuesday of a government issue of Treasury bills for $250 million in the domestic market. The government hopes to pay interest no higher than 8.0 percent on the 90-day bills.

The broad market added 0.8 percent in turnover of 21.1 million pesos against Friday's hefty 28 million. Over-the-counter deals shrank to 84.6 million pesos an hour before the OTC close against 124.8 million at the same stage Friday.

Session winners overtook losers 31 to 11, while 21 issues closed flat.

Sharpest main-tier gainers were petrochemicals concern Indupa and Ipako, which jumped 5.9 percent and 2.8 percent respectively, and holding companies Garovaglio and Commercial del Plata. which advanced 4.3 percent and 2.9 percent each.

Merval losses were led by carmaker Sevel, which shed 2.4 percent on profit-taking after recent strong gains driven by better trade conditions with Brazil. Oil company Sol Petroleo dropped 1.9 percent and biscuit maker Bagley closed off 1.4 percent.-Reuter