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Argentine Merval Rises on Tax Revenue: World's Biggest Mover

Dec. 2 (Bloomberg) -- Argentine stocks rose, the biggest fluctuation among equity markets included in global benchmarks, as a report that the government beat tax collection targets spurred a rebound after the economy minister's ouster earlier this week.
The Merval index rose 38.63, or 2.5 percent, to 1558.49, as of 11:01 a.m. New York time, the biggest gain in a month. The index has still fallen 4.4 percent this week, the second-biggest drop of 80 primary stock indexes tracked by Bloomberg. Tenaris SA, the world's biggest maker of seamless steel pipes for the oil industry, led today's gain.
The tax collection report revived optimism that the economy will stay strong, said Anibal Pires, analyst at Zaiatz & Compania Sociedad de Bolsa in Buenos Aires. Argentina's tax agency last night said it collected 108 billion pesos ($36.3 billion) in the first 11 months of the year, exceeding the annual target of 107 billion pesos. The index fell earlier in the week after President Nestor Kirchner ousted Roberto Lavagna as economy minister.
``The good tax revenue numbers relieved the markets, which are very sensitive this week because of the change,'' Pires said in a telephone interview. ``The index will remain volatile until the new minister explains her policies and priorities.''
Kirchner named Felisa Miceli, the president of state-owned Banco de la Nacion, after a dispute with Lavagna over how to stem inflation.
Price Agreements
Miceli yesterday said Argentina and dairy producers agreed to hold prices at Nov. 1 levels for the next two months in a bid to stem inflation. The government also agreed with supermarkets including France's Carrefour SA, Coto CISA SA and Hipermercados Jumbo SA, to cut prices 15 percent on food, clothing and toiletry prices as part of a government plan to slow rising prices.
``This measure also helped relieve concern about inflation in the next months and will ensure higher sales and a growing economy,'' Pires said.
Tenaris SA (TS AR) rose 1.6 pesos, or 4.7 percent, to 35.55 pesos. Crude oil may rise as stockpiles dwindle and cold weather in the U.S. Northeast increases demand for heating fuel, a Bloomberg survey showed. Twenty-three of 54 analysts surveyed, or 43 percent, said prices will increase next week. Fourteen, or 26 percent, said oil will fall and 17, or 31 percent, expect little change.
Grupo Financiero Galicia SA (GGAL AR), the country's biggest banking group, rose 4 centavos, or 1.9 percent, to 2.16 pesos.
Siderar SAIC, Argentina's biggest steelmaker for the automobile and construction industries, rose 95 centavos, or 4 percent, to 24.60 pesos, the highest price this week.
To contact the reporters on this story:
Eliana Raszewski at eraszewski@bloomberg.net
Last Updated: December 2, 2005 11:47 EST