U.S. Bond Yield Sinks Shares
May 11, 2011
The Merval Index of leading shares lost 5.81 to 504.34, after falling 4.49 Wednesday. The broad General Index dropped 196.51 to 15576.22. Declining issues outnumbered advancers, 37 to 5, while 14 shares settled the session unchanged. Volume in floor trading totaled a thin 11.79 million pesos, while volume in the computer-based market reached 40.91 million pesos. Traders said that strong U.S. macroeconomic data released Thursday, which pushed the 30-year bond yield up to 7.04%, which sparked investors' fears of an interest rate hike. In addition, investors were displeased that the Argentine Congress decided to introduce changes into a deficit-reduction package. Corcemar outperformed the market, rising five Argentine cents to 4.25 pesos. Chile's Cemento Polpaico said Thursday it raised its holding in the Argentine cement company to 21%. YPF fell 35 Argentine cents to 20.75 pesos. Benchmark telecommunications companies retreated in line with YPF. Telefonica slipped 4 Argentine cents to 2.33 pesos and Telecom dropped 7 Argentine cents to 3.76 pesos. Other decliners included Alpargatas, which shed 1.5 Argentine cents to 52 cents, and Banco de Galicia, which slipped 12 Argentine cents to 5.15 pesos per share.
