Shares in Argentina's state-controlled energy company YPF fell sharply in Buenos Aires on Monday due to investor concerns it will not secure the financing it needs to guarantee a five-year investment plan, traders said.
Shares in the oil firm, which was nationalized in May, traded down nearly 6 percent in afternoon trade at 77.5 pesos per share, dragging the blue-chip MerVal share index down 1.9 percent.
YPF shareholders last week approved plans to issue $3 billion in debt to help fund the investment plan aimed at boosting oil and natural gas output by almost a third. The company sold 1.5 billion pesos ($322 million) in short-term, local debt last week.
Senior YPF executives are due to meet potential investors in the United States and Britain later this month, but market analysts in Buenos Aires said local investors were skeptical. "The scale of YPF's slide is due to feeling that the search for foreign financing isn't going to be as easily resolved as it was in Argentina," said Horacio Corneille, a trader at a Buenos Aires brokerage that bears his last name.