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2017.07.1919:48:00UTC+00ARGENTINA: Stocks Rise After Suspension Of Capital Gain Tax

The Merval, Argentina's benchmark stock market index, snapped four consecutive sessions of decline and rose by 2.02% on Wednesday to 21,472.21 points, encouraged by an increase in oil prices and after the local government suspended a decision to tax capital gains from foreign investors.

The Argentinean government on Tuesday applied a 13.5% tax on financial transactions involving local companies and foreign investors, or a 15% tax applied to capital gains obtained through the sale or acquisition of securities with a foreign counterpart.

However, the Finance Minister suspended the decision on Wednesday until further assessment of its impacts.

"A day after publishing, Minister Dujovne reversed the rule that taxed foreigners financial income in Argentina. The market celebrated the good news, and for this reason, the Merval increased by 2.02%," said Eduardo Fern?ndez, an analyst at Rava Burs?til.

The shares of Autopistas del Sol (+5.15%), Central Puerto (+4.86%), TGN (+4.60%), Aluar (+4.28%), Minetti (+3.97%), Transener (+3.63%) and Petrolera Pampa (+3.49%) posted the biggest gains. Edenor fell by 0.56%, the weakest performance in the day.

Meanwhile, the locally traded US dollar closed up 0.17%, at 17.15 Argentinean pesos, at the end of a session with a lot of volatility following a central bank note tender.

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