The following companies had unusual price changes in Argentine trading. Stock symbols are in parentheses and share prices are as of the close in Buenos Aires. The Merval Index fell 2.6 percent to 2,689.31.
Argentina’s government is cutting utility subsidies to commercial users in a bid to stem a widening budget deficit in South America’s second-biggest economy.
Power stocks increased on the news. Cia de Transporte de Energia Electrica en Alta Tension Transener SA (TRAN AF), Argentina’s largest energy transmission company, gained 1.4 percent to 1.4 pesos, its seventh day of gains in the last eight. Pampa Energia SA (PAMP AF), the country’s largest energy holding company, advanced 2.1 percent to 2.45 pesos.
Siderar SAIC (ERAR AF) retreated 9.3 percent to 23 pesos. Argentina’s largest steel producer has dropped 18 percent in the last two days, the biggest two-day drop since October 2001, after third quarter profit plunged 95 percent.
YPF SA (YPFD AF) fell 5.5 percent to 153.5 pesos. Argentina’s largest oil company has lost 10 percent in the last two days after Moody’s Investors Service downgraded the company to Ba2 from Ba1, citing the government’s plan to force oil and gas companies to repatriate their export proceeds.
–Editors: Glenn J. Kalinoski, Richard Richtmyer
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
Source: Bloomberg