MercoPress. South Atlantic News Agency
Buenos Aires stock market plunges 7.2%, and the US dollar recedes slightly
Markets are still uneasy waiting for the new rules of the game to be managed by Vanoli The day after Argentina's central bank governor Juan Carlos Fabrega stepped down, investors expressed their pessimism as Buenos Aires City stock market, Merval, which plunged 7.2% to 10,703.32 points on Thursday.
The Merval index dropped 6% this week, although it shows a 113.6% increase in accumulated gains.
Fabrega -who will be replaced by CNV securities regulator head Alejandro Vanoli- quit on Wednesday after President Cristina Fernandez accused the Central Bank of leaking “privileged information” to certain banks involved in foreign-exchange operations in the black market.
Likewise in Wall Street US-traded shares of Argentine companies were sharply lower on Thursday after the government appointed a new central bank chief.
Bank stocks were among the worst hit, with ADRs of Banco Macro down 6.1% and BBVA Banco Frances down 6.8%. Other Argentine stocks falling sharply on Wall Street included Petrobras Argentina, down 5.2% and Edenor, off 4.3%.
The Bank of New York Mellon index of Argentine ADRs fell 3.8% on the day.
As to the money exchange market on Thursday trading the blue-chip swap dollar rate plunged 47 cents to close at 13.89 pesos, losing 79 cents this week and the stock exchange rate, meanwhile, dropped 50 cents to 14.06 Pesos.
At the same time, the so-called “blue” dollar traded 10 cents down to close at 15.50 Pesos, amid growing fear of tighter controls for more control on the dollar rate both in the illegal market and the blue-chip swap rate.
The official rate was also down by a cent at 8.46 Pesos in Buenos Aires city banks and exchange offices, setting the gap against the “blue” at 83% percent.
During Alejandro Vanoli's first day as Central Bank governor, transactions totaled 195 million dollars, 15% higher compared to Wednesday, and the BCRA bought 30 million dollars.
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Read all commentsrotting roadkill equities are a bloated tick. The entire market run up is an inflation/calamity hedge driven enterprise as the fundamentals of each and every component is negative on the last several quarters. The money has to be somewhere. From a political capital risk analysis perspective rotting roadkill is now firmly entrenched in the middle of the pack in the group of the most unstable states. Emerging market ratings are the cartoons crafted from the psycho hallucinogenic style ravings of multimillion dollar induced whores posing as risk analysts.
Oct 03rd, 2014 - 10:18 am 0A little pictorial of what can be purchased for what price in Venezuela, an snapshot into Argentina's future:
Oct 03rd, 2014 - 02:43 pm 0http://finance.yahoo.com/photos/venezuela-s-surreal-prices-1412257767-slideshow/
Sneakers......almost 1,200?
The neither rotting roadkill or its stock exchange is of any consequence to anyone other than rotting roadkill. It is infinitesimally small. Let's go straight to the numbers.
Oct 03rd, 2014 - 04:27 pm 0Per the World Federation of Exchanges' September 2014 report, the market capitalization of the entire BCBA was 00.34% of that of the NYSE using the b l a n c o rate or in actuality - 00.18 percent.
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