UPDATE 3-Venezuelan dollar bonds rise after opposition beats Socialists
(Updates prices, adds investor quotes)
By Sujata Rao
LONDON Dec 7 (Reuters) - Venezuelan dollar bonds rose strongly on Monday after the opposition beat the ruling Socialists in a parliamentary election at the weekend, raising hope of at least some economic reform in the crisis-ridden country.
Bonds from the sovereign as well as state oil firm Petroleos de Venezuela (PDVSA) rose as much as 4.2 cents on the dollar, moves expected to extend further if the opposition fulfils its expectations of a two-thirds majority.
Opposition Democratic Unity leaders said on Monday they had reached the crucial bar of two-thirds of seats - but there was no confirmation of that from the national election board.
The opposition coalition has so far won 99 seats, against the Socialists' tally of 46 seats, with some districts still to be counted. President Nicolas Maduro has called on his supporters to accept defeat.
Sovereign bonds retreated from the highs reached earlier on the day. Issues maturing in 2022 were last up 3.05 cents after reaching a 10-day high of 52.800 earlier in the day. The 2028 rose 2.6 cents, while the 2038 issues firmed up 2.6 cents. The 2027 issue, considered the benchmark for Venezuela, were last up 2.59 cents , according to Thomson Reuters data.
PDVSA's 2024 issue rose as much as 1.9 cents , while the 2027 bond were last up 1.9 cents .
"Bonds were up four or five points at the open and economic adjustment to currency regime, price controls, fuel subsidies could also be forthcoming," said Anthony Simond, emerging market debt research analyst at Aberdeen Asset Management. Aberdeen added to its Venezuelan bond holdings two weeks ago on the expectation the opposition would win the election. Continuación...