Argentine Stocks Rise as Petrobras Shares Jump on BP Discovery

Strategic Insights -

Argentine stocks rose on Wednesday as Petrobras shares increased 3.01% after BP announced a significant oil discovery in the U.S. Gulf of Mexico, in which Petrobras holds a 20% stake. The Merval index, which is heavily influenced by Petrobras due to its significant market weighting, also rose as a result. Telecom Argentina led the declines, falling 1.32%, following a ruling by Argentina's National Antitrust Commission that Telecom Italia must sell its stake in the company.

Key Takeaways:

  • Petrobras shares rose 3.01% to ARS78.60, driven by the significant oil discovery in the U.S. Gulf of Mexico.
  • The Merval index was influenced by the Petrobras share price increase, as the company is the second-largest component in the index by market weighting.
  • Telecom Argentina led the declines, falling 1.32% to ARS11.20, following a ruling by the National Antitrust Commission.
  • Telecom Italia was ordered to sell its stake in Telecom Argentina within one year, with a plan for the sale to be presented within 60 days.
  • The ruling was the result of a conflict of interest, as Telecom Italia has investment ties to other companies operating in Argentina.

Statistics:

  • Petrobras shares rose 3.01% to ARS78.60 on the news of the BP discovery.
  • The Merval index increased due to Petrobras' significant market weighting.
  • Telecom Argentina fell 1.32% to ARS11.20 on the ruling affecting Telecom Italia.
  • The National Antitrust Commission gave Telecom Italia one year to sell its stake in Telecom Argentina.
  • The plan for the sale must be presented within 60 days.

Sources:

  • Dow Jones Commodities News Select via Comtex
  • Dow Jones Newswires
  • "Argentina Bedeviled by Politics as Stocks Jump" by Jose De Cordoba
  • "Argentina's Stocks Rally as Petrobras Shares Soar" by Dionne Searcey
  • "Telecom Italia Must Sell Stake in Argentine Unit" by Ryan Chilcote
  • Dow Jones & Company, Inc.