The ADRs of Argentine companies, which had started the day with increases, ended with a majority of declines, among which those of BBVA bank (-7.1%); Pampa Energía (-5%) and Transportadora de Gas del Sur (-4.8%). For its part, YPF shares fell 3.3%, after trading on the day with a rise of more than 4%.
All Argentine assets registered a change in trend after it became known that Argentina suffered a legal defeat in the United States with a ruling against, in a dispute with minority shareholders arising from the expropriation of YPF by the country in 2012.
The plaintiffs had order US$16,050 millionwhile Argentina said it did not owe more than US$4.92 billion, court documents show. The country had argued that a large payment would «further burden a sovereign nation with a population enduring pressing economic challenges and would far exceed Argentina’s budget for many critical services.»
The Argentine Government has already echoed the ruling and it was the spokesperson for the Presidency, Gabriela Cerruti, who agreed that the decision will be appealed. «The Argentine government will immediately appeal Judge Loretta Preska’s ruling. President @alferdez discussed the issue with the Treasury Attorney. We will continue to defend energy sovereignty and our state company YPF against vulture funds,» Cerruti published on his social media .
In this framework, the leading index S&P Merval of Argentine Stock Exchanges and Markets (BYMA) fell 2.8% to 532,550.37 units after starting the upward wheel, before which it extends its streak of consecutive losses to 8. In addition, the selective closes the week with a decrease in pesos of 16.3%, the worst since March 2020 when the pandemic began.
Given this, the day’s declines were led by BBVA bank (-7.3%); Transportadora de Gas del Norte (-5.3%), and Pampa Energía (-4.3%). It should be noted that the stock benchmark recently noted its intraday historical high level at 690,781.66 points, in a August that closed with a firm rise of 43%, in the middle of the electoral trade.
«The global context worsened and in Argentina Investors began to migrate from “hedge” (includes bonds, stocks, Link dollar instruments, and CER) towards interest rates; this was enough for explain why everything went downboth assets in dollars (Global) and in pesos (the CCL dollar dropped to $740)«, they explained in a report from FMyA.
Bonds and country risk
In the fixed income segment, Argentine bonds nominated in dollars They followed the trend of the stocks and recorded drops of up to 4%. Thus, the main falls belonged to the Global 2038 (-4%), Global 2035 (-3.8%), and Bonar 2041 (-2.9%). Meanwhile, the risk country what does it measure JP Morgan rises 17 basis points, to 2,155 units.