YPF Falls as Government Conflict Continues: Buenos Aires Mover
YPF SA (YPFD), Argentina’s largest energy company, fell for a second day on speculation that a conflict with the government over investment plans will continue to pose risks for the company.
YPF retreated 7 percent to 132.5 pesos at 3:17 p.m. in Buenos Aires, adding to a 2.4 percent loss on March 2. The stock had gained 17 percent on March 1, after President Cristina Fernandez de Kirchner didn’t address a potential nationalization of the company as previously speculated in local newspaper Ambito Financiero.
“The gain after the speech may have been excessive,” Augusto Posleman, head of private banking services at Buenos Aires-based brokerage Puente Hermanos, said in a phone interview. “You’ll always see a lot of volatility among any stocks involved in a conflict such as this one. There haven’t been any advances during the weekend and volatility will continue.”
YPF has been under pressure by the government to increase production after it said oil companies doubled fuel imports in 2011.
The southern Argentine province of Santa Cruz demanded that the country’s biggest oil producer and distributor fulfill its investment commitments, state news agency Telam reported yesterday. The province of Chubut said March 2 it would give the company seven days to provide a “working plan” to increase production.
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