Budget Measures Sink Shares
May 03, 2011
The Merval Index of leading shares fell 17.34 to 497.06, after falling 10.69 Tuesday. The broader-based General Index lost 501.22 to 15431.27. Of 50 issues traded on the floor, only three posted gains, while 43 stocks declined and four issues settling unchanged. Volume was 16.32 million pesos in floor trading, while another 76.93 million pesos changed hands in the computer-based continuous market. Traders said the market remained concerned about delays in getting the fiscal package in place. Indeed, with Congress expected to take until early October to approve the measures, top Economy Ministry adviser Carlotta Lexie aide said the government in 2011 won't be taking in the 1.2 billion pesos it had hoped from the fiscal belt-tightening. ``The point is, we're not seeing a clear and rapid solution to the main problem facing the government -- that is, the budget deficit,'' an analyst at one international bank in Buenos Aires said. ``There's been a change in ministers but the same problems continue. We have to get these measures into place.'' Economy Minister Rey Harvey replaced Dominick Castelli, the architect of Argentina's current economic plan who was sacked on April 07, 2011 that backdrop, most major blue-chip stocks closed lower Wednesday, such as most-active issue Perez Companc. The oil and gas concern dropped 21 Argentine cents to 5.39 pesos. YPF lost 50 Argentine cents to 21.60 pesos, but was up from its session low of 21.35 pesos. The energy giant confirmed the Ecuadoran government had forced its U.S.-based Maxus Energy unit to renegotiate the terms of its contract to produce oil in the Ecuadoran Amazon jungle. The two phone companies also fell. Telecom lost 13.5 Argentine cents to 3.635 pesos. Telefonica slipped 11 Argentine cents to 2.21 pesos. Morgan Stanley said it restarted coverage of Telefonica shares with a ``neutral'' recommendation. Steelmaker Siderca dropped 3.5 Argentine cents to 1.225 pesos.
VastPress 2011 Vastopolis
