BUENOS AIRES (Dow Jones)–Concerns about political and economic uncertainty in Europe combined with worries about plans to nationalize the oil company YPF SA (YPF, YPFD.BA) to push stocks lower Monday.
The Merval index fell 1.2% to 2309.85 in volume totaling almost ARS37.7 million ($8.6 million).
«We’re starting to see more doubts about the global economy,» said Adrian Mayoral, a trader at his family’s brokerage. «Today the concern seems to be related to France and its elections. In Argentina volatility was greater but volume was low.»
YPF, Argentina’s biggest oil and gas company, led the declines. Last week, Argentine President Cristina Kirchner asked Congress nationalize 51% of YPF by expropriating shares from its majority shareholder, Spain’s Repsol YPF SA (REP.MC, REPYY).
Government officials have spoken in generalities about YPF’s future, saying they will run the company professionally. But it is unclear exactly what the government will do with YPF because it hasn’t laid out a detailed management plan.
Grupo Financiero Galicia SA (GGAL, GGAL.BA) fell 2.3% to ARS3.03. The steel producer Tenaris (TS, TEN.MI) slid 0.5% to ARS97. Another steel producer, Siderar (ERAR.BA), rose almost 3% to ARS1.39.
The Global X FTSE Argentina 20 ETF fell 3.5% to $9.12.
Mayoral said better than expected economic data has lifted so-called GDP Warrants tied to gross domestic product.
The TVPE 2035 warrant, a euro-denominated GDP warrant, rose almost 1.3% to ARS79.
The peso weakened against the U.S. dollar to ARS4.4075 on the MAE local foreign-exchange wholesale market, compared with ARS4.4040 in the previous session.
The central bank regularly intervenes in the foreign-exchange market buying or selling dollars to build its international reserves and keep the peso on a slow path of depreciation against the dollar, which helps local exporters.
Last year the peso weakened 7.6% against the dollar.
-By Taos Turner, Dow Jones Newswires; 5411-4103-6728; taos.turner@dowjones.com
Source: http://online.wsj.com/