YPF shares sank 5.6% after adverse failure in the US and infected the rest of the Argentine assets

Recall that, in 2012, the then Government of Cristina Kirchner (2007-2015) nationalized a majority participation in the energy company. The Congress approved a law by which 51% of YPF shares were expropriated to the then majority shareholder, the Spanish company Repsol, which finally received compensation of about US $ 5,000 million.

“Argentina still takes place to appeal, but needs a suspension of the failure”he expressed in the networks, Matías CattaruzziMr. Equity Research Analyst in ADCAPwho expanded: “Argentina has to transfer the actions in 14 days or appeal with suspension, but it is not assured that you get it. Not complying generates reputational damage in negotiations with IMF and/or investments in VM or the country. “” On the other hand, YPF’s foundations are still solid; Stable Downstream Income and Focus on Advanced Shale, “he added.

From Capital Guardian They also echoed this news. “According to the New York Lawthis enables to seize Argentine assets, including the actions of YPF. However, Argentina can and is already appealing the resolution, “they said.” While today we saw volatility in YPF ADR, The reality is that this ruling does not change the company’s metrics, due to those who must pay is the Argentine State, and therefore this news should have more implication in sovereign debt “they concluded.

YPF and the failure: what to expect in the short term

Ignacio SniechowskiHead of Research of IEB Grouphe said to Scope that “beyond the noise that generated the news, it seems important to highlight some points. First, It is clear that YPF is still out of the discussion, which is evidenced in the fact that the judge asks for 51 of the actions in the hands of the State as part of payment. He even puts a term to the delivery of these actions; 15 days. “

According to this expert, That 51% are actions that are in Argentine territory (The actions posed by the State are not found as a deposit abroad; that is, they are not ADRs) and any change should go through the National Congress. “Argentina is going to appeal this decision but it will also have to start arguing seriously with Burford Capital how the US $16 is going to pay more interests that remained as debt,” he said.

Sniechowski added: “Burford knows that Argentina cannot pay US $16 billion so just and that it will need to access international markets with which, beyond the appeal, with which you won time, Not addressing the problem could lead to a potential contempt, Something that the country has already lived, the time has come to start negotiating“

S & P Merval and Adrs

With the strong fall of YPF, the S&P Merval, that operated upwards at the beginning of the day, it fell strong, to close with a daily setback from 23% to 1,994,824.50 basic points, while measured in dollars yielded 2.8% to 1,648 points.

Within that framework, the leading actions that more they went down this Monday were those of Metrogas (-5.3%), YPF (-5%); and Comercial del Plata (-4.8%). Only the papers of Aluar (+1.7%); Telecom (+0.9%); and Cresud (+0.4%).

In this way, the Argentine stock market index registered A 12.9% decrease in dollars (-12.5% ​​in pesos) during June, completely erasing May profits, when she had increased by about 8%. The worst monthly casualties were suffered by the commercials of Comercial del Plata (-26.6%); Tranener (-23.5%); and northern gas transporter (-20%).

In turn, Adrs sank on the wheel up to 5.6% by the hand of YPF, Edenor (-3.7%); and Supervielle Group (-3.6%). Throughout June, the Argentine companies papers suffered casualties from up to 19.8%led by Edenor, Supervielle (-18.7%), and Macro Bank (-16.9%).

Bonds and Risk Country

In the fixed income segment, the Bonds in dollars, that the rise week had started, reversed the trend and fell to the news about YPF. The worst performances were for: the Bonar 2035 (-1.4%), the Global 2046 (-1.3%), and the Global 2029 (-1.3%).

In the monthly balance, they closed practically unchanged. Yet, The country risk closed on Friday at 677 points -Last known data-, although with the fall of the bonds on Monday it approached 700 points, a slightly higher level than those registered at the end of May.

Besides, The Bopreals rose 50 cents and throughout the month they accumulated increases of 1.7% average.

The CER segment increased 0.5% in the short section, but fell 0.5% in the long stretch of the curve. Punta to end throughout the month, the short CER section showed 1%, while the long section yielded 0.4% average.

Going to the fixed rate segment, The short section rose 0.2%, with the long section falling 1.2%. In all June, The short section climbed 1.4% average, but the long section lost 3%.

Finally, the “floaters” (tamar/dual) 0.7%fell, except for M31L5 that rose 0.6%. Punta to end, In the month the duals fell 0.9%, with the M31L5 climbing 2.7%, He reported Grupo SBS.