BUENOS AIRES (Dow Jones)–Argentine stocks performed poorly on Monday, falling 2.7% on renewed concern about financial problems in Europe and fears that Argentina’s government may pursue more controversial economic policies.
The Merval index rose 2.7%, to 2,676.91 points in volume, totaling ARS32.4 million ($7.6 million).
«We’re doing very badly,» said Adrian Mayoral, a trader at his family’s brokerage. «The most positive thing about the today is that there was very little volume. With this volume we can’t say anything definitive, but it confirms the trend, which is heading in the wrong direction.»
Mayoral said the market fell because of fear that financial problems in Europe will escalate into a full-blown crisis. Investors are also worried that Argentina’s government might pursue policies that «wouldn’t be good for the market,» he said.
The bank Banco Macro SA (BMA.BA, BMA) fell the most, declining 5.3%, to ARS9.85. It was followed by the financial conglomerate Grupo Financiero Galicia SA (GGAL.BA), which slid 5.2%, to ARS3.65. The bank Banco Hipotecario SA (BHIP.BA) fell 5.2%, to ARS1.65.
No Merval stocks rose.
The Global X FTSE Argentina 20 ETF, which tracks shares of Argentine companies listed on international markets, fell 0.52% to $11.5 in New York.
Bonds closed down, too.
The price of the benchmark peso-denominated 2033 bond fell 2.4%, to ARS122, yielding about 13.3%.
The peso weakened to ARS4.2745 on the MAE local foreign-exchange wholesale market, compared with ARS4.2695 in the previous session.
-By Taos Turner, Dow Jones Newswires; 5411-4103-6728; taos.turner@dowjones.com
Source: http://online.wsj.com