Argentina Stocks Fall, Bonds Up As Investors Eye Greece Debt Swap

BUENOS AIRES (Dow Jones)–Argentina’s stocks on Thursday closed lower, led by financial and materials shares, though strong gains in U.S. and European markets on hopes of a successful Greek debt swap lifted local bonds.

The benchmark Merval equity index fell 0.1%, to 2683.96, on volume of 58.5 million pesos ($13.5 million).

The Global X FTSE Argentina 20 ETF, which tracks shares of Argentine companies listed on international markets, rose 2.1%, to close at $11.24 in New York.

Shares of banking concern Grupo Financiero Galicia SA (GGAL, GGAL.BA) fell 3.2%, to ARS3.35, Banco Macro SA (BMA, BMA.BA) lost 1.2%, to finish at ARS9.68, and cross town rival BBVA Banco Frances SA (BFR, FRAN.BA) dropped 2.1%, to ARS9.55.

Steel maker Siderar SA (ERAR.BA) fell 3.2%, to ARS1.82, and food processing company Molinos Rio de la Plata SA (MOLI.BA) plunged 7.5%, to ARS25.25.

Shares of energy companies posted strong gains, with the country’s largest oil and gas producer, YPF SA (YPF, YPFD.BA), rising 3.2%, to ARS138.80, steel tube maker Tenaris SA (TS, TS.BA) closing 4.4% higher, at ARS99.00, and oil company Petrobras Argentina SA (PZE, PESA.BA) up 0.8%, to ARS6.55.

Turnover on the local fixed-income market was ARS458.4 million, accounting for 63% of the total volume of securities traded on the exchange during the session.

The Bonar X rose 0.7% in price terms to close at ARS441.50, yielding 7.39%. The Bogar 2018 closed 1.6% higher, at ARS230.00, to yield 11.01%.

The 2033 Discount bond fell 2.3%, to ARS135.00, pushing yields up to 12.46%.

The Boden 2015 rose 0.7%, to ARS478.25, yielding 4.86%.

The 2035 peso-denominated GDP warrant rose 0.3%, to close at ARS13.30, while dollar GDP warrants rose 0.5%, to ARS66.30.

The peso weakened to close at ARS4.3385 to the U.S. dollar on the MAE local foreign-exchange wholesale market, compared with ARS4.3365 at Wednesday’s close.

The central bank regularly intervenes in the foreign exchange market to buy dollars and to keep the peso on a slow path of depreciation against the U.S. dollar.

Puente brokerage said in its afternoon note that $351 million was traded on the local foreign-exchange market, with the central bank buying just over $100 million in dollars.

-By Ken Parks, Dow Jones Newswires; 54-11-4103-6740, ken.parks@dowjones.com

Source: online.wsj.com