Argentine stocks sank on Wednesday to a four-month closing low, as investors shed the heavily weighted Argentine unit of Brazil state oil company Petrobras after it denied rumours of a pending share buyback. The MerVal index of the 42 leading stocks fell 2.39 percent to 2,089.58 points, its lowest level since September 18.
On the broad market volume was robust at $48 million. Of active shares, 86 declined, 33 advanced and 14 were unchanged. The session's loss leader was Petrobras Energia Participaciones, which plummeted 19.49 percent to close at 4.13 pesos per share.
The stock had surged 38 percent in the last month, buoyed by rumours of a share buyback. The company denied the rumours in a statement on Wednesday. Petrobras Participaciones is weighted as 5.45 percent of the MerVal.