BUENOS AIRES (Dow Jones)–Argentina’s stocks and bonds tumbled on Wednesday, as Europe’s sovereign debt crisis showed more signs of spinning out of control with yields on Italian government debt soaring above a key threshold.
The Merval index of leading shares fell 4.2% to close at 2676.44 on volume of 34 million pesos ($8 million). The local stock market opened nearly three hours late due to a problem with a server at the country’s clearing house.
The Global X FTSE Argentina 20 ETF, which tracks shares of Argentine companies listed on international markets, fell 3.8%, to close at $11.26 in New York.
U.S. and European stock markets plunged as Italy’s bond yields soared above the 7% mark that prompted Greece, Ireland, and Portugal to seek external assistance.
Among local issues, banking concern Grupo Financiero Galicia SA (GGAL.BA, GGAL) fell 4% to ARS3.80; Banco Macro SA (BMA.BA, BMA) lost 5.2% to close at ARS9.81; and aluminium maker Aluar Aluminio Argentino SA (ALUA.BA) fell 4.8% to ARS3.59.
Turnover on the local bond market was ARS417 billion, accounting for 63% of the total volume of securities traded on the exchange during the session.
The Bogar 2018 lost 3.5% to ARS196.20, to yield 15.34%, while the Bonar X fell 2.3% to ARS385.10, yielding 9.66%.
The Boden 2015 dipped 1.5% to ARS426.00, yielding 7.38%.
The 2035 peso-denominated GDP warrant fell 2.4% to ARS14.07, while dollar GDP warrants closed 1% lower at ARS73.15.
The peso weakened to close at ARS4.2625 on the MAE local foreign-exchange wholesale market, compared with ARS4.2600 at Tuesday’s close.
Puente brokerage said in a note that $336 million changed hands on the foreign exchange market during the session, with the central bank buying $40 million.
-By Ken Parks, Dow Jones Newswires; 54-11-4103-6740, ken.parks@dowjones.com
Source: /online.wsj.com