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Argentine stocks fell on Friday amid profit-taking, particularly in the banking sector, while Banco Frances slipped sharply after announcing a new share issue.
The MerVal share index closed down 1.01 percent at 1,128.74 points. Volume was moderate at 68.7 million pesos ($23.1 million).
The index is still up more than 5 percent this year on optimism Argentina could successfully restructure its $100 billion defaulted debt. The government has already reached a debt accord with local pension funds.
Argentina is expected to present its formal, detailed debt offer to the US Securities and Exchange Commission next week.
Banco Frances, which accounts for 4.38 percent of the MerVal and is controlled by Spain's BBVA group, shed 4.8 percent to end at 5.95 pesos after announcing the share issue.
"Minority shareholders hold 20.5 percent of the bank and this could fall to 16 percent due to BBVA's move to increase its share participation," the Argentine Research consultancy said. In the foreign exchange market, the peso closed 0.25 percent stronger at 2.97/2.975 per dollar.

Copyright Reuters, 2004

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