Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Kirchner’s Death May Spell End of Spending Era as Shares Rally

Don't Miss Out —
Follow us on:

Oct. 27 (Bloomberg) -- Argentina stocks rose the most in two years in New York trading as some investors speculated the death of former President Nestor Kirchner will lead to a more-stable economy and reduced government spending.

The MSCI Argentina Index gained 10 percent to 3,458.64 at 10:58 a.m. New York time. It rallied as much as 13 percent, the steepest intraday advance since Nov. 24, 2008. Grupo Financiero Galicia SA, the South American country’s biggest consumer lender, surged as much as 26 percent.

Kirchner, who handed power to his wife Cristina Fernandez de Kirchner in 2007, died after suffering a heart attack, C5N television network reported today. Investors are buying Argentine American depositary receipts on prospects that “the Kirchner era” of high inflation fueled by public spending and low corporate investment may end, said Greg Lesko, who helps manage $750 million at Deltec Asset Management in New York.

“Stocks are going nuts,” Lesko said by telephone. “There is no guarantee that the next person will be any better but change is what the market has been wanting.”

Argentina markets, closed today for a public holiday, probably will rally as Kirchner was perceived as an obstacle to investment, Guillermo Mondino, head of Latin America research at Barclays Capital in New York, said in an e-mailed note.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.