(Agencia CMA Latam) - Merval, the benchmark stock index in Argentina, opened higher Monday but reversed its course during the session to close at 21,326.36 points (-0.80%).
Most of the shares traded in Buenos Aires closed down, with investors turning more selective amid political uncertainty after polls showed support for opposition candidates in the legislative election scheduled for October. Markets viewed that as a potential threat to Mauricio Macri's economic reforms.
"The local market started the week with a clear selling trend," noted Oscar Campos, an analyst at Intervalores.
Petrobras Brasil's and YPF's shares closed higher due to the oil price rebound abroad, rising by 1.70% and 0.61%, respectively.
Meanwhile the largest falls were Transener (-5.56%), Agrometal (-5.23%), Autopistas del Sol (-5.22%). Cresud dropped by 0.47% after reporting the sale of the La Esmeralda division.
Meanwhile, Andes Energ?a's shares were suspended after reports on its merger with Petrolera El Trebol (PETSA) to explore Vaca Muerta's oil and gas reserves.
The locally traded US dollar rose slightly, closing at 17.43 Argentinean pesos (+0.05%), giving back early gains after an intervention by government-related banks.
ABC Mercado de Cambios analysts said that the government was away from the foreign exchange market since the beginning of March. "As it is logical to expect, at some point the central bank would put a limit to the uncontrolled dollar's rise against the peso," said Fernando Izzo, an analyst at ABC Mercado de Cambios.
by Agencia CMA Latam
For comments and feedback: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.