March 9 (Bloomberg) -- Argentina's main stock index had its biggest gain in more than two weeks after TodoNoticias television reported the government agreed to make a $3.1 billion payment to the International Monetary Fund, raising investor expectations the country will get new financing.

The Merval index rose 52.77, or 4.5 percent, to 1202.13 at 11:52 a.m. New York time, the biggest gain since Feb. 23, when the index surged 4.7 percent. Grupo Financiero Galicia SA, the country's biggest non-government owned bank, led the rise.

The market extended gains on the television report that Argentina agreed to make a $3.1 billion payment due today after a 30-minute meeting between President Nestor Kirchner and IMF Acting Managing Director Anne Krueger. Kirchner had said he wouldn't make the payment without assurances that the IMF will make a new $3.1 billion loan this month to the country, which has South America's second-largest economy.

``The cliche is that if you owe the IMF so much money it's their problem as well,'' Bill Rudman, who helps manage $1.1 billion in emerging market assets at WestLB in London, said before the report. ``The talk on negotiations will never stop. They can't walk away from this because it's too much money.''

In other markets, Brazil's Bovespa fell 106.41, or 0.5 percent, to 22,886.90, falling for the first day in three. Mexico's Bolsa fell 44.04, or 0.4 percent, to 10051.83. The main stock index in Chile rose, while the main indexes in Venezuela, Peru and Colombia were little changed. Morgan Stanley's index of Latin American shares fell 0.2 percent to 1178.07.

The following stocks are making significant gains or losses in Latin American markets today. Symbols are in parentheses after the company name. In Brazil the preferred share is usually the company's most-traded class of stock.

Argentina

Grupo Financiero Galicia SA (GGAL AR) rose 10 centavos, or 4.3 percent, to 2.44 pesos, heading to its biggest gain since Feb. 23. Galicia is among Argentine banks that the country hired to advise the government in debt renegotiations.

Acindar Industria Argentina de Aceros SA (ACIN AR), Argentina's biggest maker of steel rods used in construction and for auto parts, rose 16 centavos, or 5.7 percent, to 2.98 pesos, heading to its biggest gain since Jan. 5, when it rose 5.8 percent. Acindar said it posted profits of 599.9 million pesos ($204.9 million) last year compared with losses of 250 million pesos in the year earlier.

Brazil

Tele Norte Leste Participacoes SA (TNLP4 BS), or Telemar, the country's largest phone company, fell 40 centavos, or 0.9 percent, to 43.60 reais. The stock, which has the heaviest weighting in the Bovespa index, gained 3.3 percent in the previous two sessions.

Net Servicos de Comunicacao SA (PLIM4 BS), the country's largest cable television operator, jumped 3 centavos, or 3.8 percent, to 82 centavos, gaining for a fifth day. In the year, the stock has fallen 9.9 percent, compared with a 2.7 percent gain in the Bovespa index.

Centrais Eletricas Brasileiras (ELET6 BS), or Eletrobras, the country's largest power generator, fell 33 centavos, or 0.8 percent, to 39.47 reais, after gaining 5.9 percent in the previous two sessions. Brazil's Senate is scheduled to vote today on a second bill to set rules for the power industry.

Cia. Siderurgica Nacional (CSNA3 BS), Latin America's second- largest steelmaker, fell 6.19 real, or 3.1 percent, to 193.31 reais. The company may say later today its profit fell in the fourth quarter to 300.5 million reais ($105 million) from 379.7 million reais a year earlier, according to the mean estimate of four analysts surveyed by Bloomberg.

Mexico

Grupo Mexico SA (GMEXICOB MM), the world's third-largest copper miner, fell a second day, declining 95 centavos, or 2.3 percent, to 40.30 pesos after the price of copper at the Comex division of the New York Mercantile Exchange fell 1.9 percent, to $1.273 a pound. The stock is the fourth-best performer on the Mexican stock index in 2004, after it had been the best performer for most of the year.

Inbursa Grupo Financiero SA (GFINBURO MM), the bank controlled by Mexican billionaire Carlos Slim, fell 20 centavos, or 1.4 percent, to 13.7 pesos. Desc SA, a Mexican auto parts maker that defaulted on some of its debt, said yesterday Inbursa has agreed to buy as much as 2 billion pesos of the 2.74 billion pesos in new shares Desc plans to sell.

Chile

Colbun SA (COLBUN CI), Chile's third-largest energy generator, rose 1.5 pesos, or 2 percent, to 78 pesos. Colbun's contracts to supply of energy for Codelco, the world's biggest copper miner, will let the company at least maintain its earnings, said Francisco Montaner, general manager at brokerage Euroamerica Corredores de Bolsa SA in Santiago.

Empresa Electrica del Norte Grande SA (EDELNOR CI), a Chilean energy generator, rose 13 pesos, or 4 percent, to 340 pesos. A possible merger with other Chilean energy units of its parent company, Belgium's Tractebel SA, would permit the stockholders to sell its shares at the last book value of 486,64 pesos, Montaner said.

Colombia

Interconexion Electrica SA (ISA CB), Colombia's largest energy transmitter, rose 10 pesos, or 0.6 percent, to 1,695 pesos after it reported its net income more than tripled to 81 billion pesos ($28 million) last year.

Venezuela

CA Nacional Telefonos de Venezuela (TDV/D VC): Venezuela's largest telephone company, rose 93 bolivars, or 1 percent, to 8,998 bolivars after Spain's TelefonicA SA said it would sell its 6.9 percent shareholding in the company.

To contact the reporters on this story: Telma Marotto in Sao Paulo at tmarotto1@bloomberg.net and Eliana Raszewski in Buenos Aires at eraszewski@bloomberg.net

Last Updated: March 9, 2004 12:37 EST