By Taos Turner
BUENOS AIRES--Securities tied to economic growth in Argentina
had a bad day Tuesday, falling across the board even as the stock
market posted gains.
So-called GDP warrants fell sharply for a second consecutive
day, in one case dropping by almost 7%, a day after a Bank of
America report said the warrants were pricey.
The TVPA warrant fell 5.6% to 45.40 Argentine pesos ($9.93); the
TVPE fell 3.7% to ARS50.30; the TVPP fell 4.7% to ARS6.75; the TVPY
sank 6.9% to ARS44; and the TVYO slid 5.5% to ARS44.
"We believe the GDP Warrants are rich given the unlikely
prospect of GDP coming in above the dividend threshold in the next
2 years, the current litigation risk, and the current price which
stands almost 3 times as high as the tail in June 2012," the Bank
of America report said.
The securities often rise or fall sharply, reflecting changing
expectations economic growth as well as pricing considerations.
Though bonds in general performed poorly, stocks turned in a
solid performance, putting the Merval index above 3,000.
The Merval benchmark stock index rose 0.82% to 3,018 in trade
totaling ARS47 million ($9.5 million).
The state-run oil and gas company YPF SA (YPFD.BA, YPF) led the
gains, rising almost 5% to settle at ARS108. It was the most traded
stock of the day.
The financial conglomerate Grupo Financiero Galicia SA
(GGAL.BA), which was also heavily traded, fell 0.8% to close at
ARS4.74. Banco Macro (BMA.BA, BMA) was the third-most traded share.
It was unchanged, though, closing at ARS12.50.
The black-market exchange rate was little-changed, trading for
ARS7.06 to the dollar, according to financial newspaper El
Cronista. Black-market activity has been elevated because of strong
demand for dollars from Argentine tourists who have needed dollars
to use on overseas vacations.
The official exchange rate, which is regulated by the central
bank, closed at ARS4.9310 to the dollar on the MAE wholesale
currency market, compared with ARS4.9305 in the previous
session.
Write to Taos Turner at taos.turner@dowjones.com