Jun
17
Boston, MA 06/17/2014 (wallstreetpr) – Financial services provider Grupco Financiero Galicia S.A. (ADR) (NASDAQ:GGAL) recorded one of the worst performances in the bourses on Monday and the extension of further losses on Tuesday cannot be ignored. Other companies stocks of Argentina too have suffered the bear hammering on Monday. It is because of the court ruling impacting the financial stocks following the rejection of Argentina appeal for debt restructuring.
Stock Plummets
The company’s stock plunged 8.2% on June 16 with a significant number of shares changing hands in the process. There is no unfavorable news from either the company or from the broking houses cutting down estimates or downgrading the stock except the court ruling.
Only on June 10, shares of Grupco Financiero Galicia S.A. (ADR) (NASDAQ:GGAL) reached a yearly high price of $15.33. It meant a loss of 17.2% based on the closing price of $12.69 on June 16. Compared to the fall in percentage of the stock on Monday, the current month of June witnessed the stock dropping by 6.6%.
The stock’s 52-week low was $4.96, which meant that the stock has still closed 156% above the lowest price in a year. The shares of the company rose only 0.9% in May. The stock witnessed an increase of 21.4% in the current year based on the closing price of $10.45 on December 31.
Volume and Reason
The volume of shares traded on Monday was 1.82 million compared to 478.8K and 1.0 million shares in the preceding two days of trading. It also represents nearly three times higher than the three-month average volume of 534.5K shares and nearly doubles from the 10-day average volume of 978.5K shares.
Though the stock ended below the 50-day moving average price of $13.38 on Monday, it was still higher than the 200-day moving average price of $11.36. It meant that there could be more downtick pressure only if the shares of Grupco Financiero Galicia S.A. (ADR) (NASDAQ:GGAL) breached below the 200-day moving average price.
While there is nothing from the company to indicate any unfavorable news to impact its shares, stocks and bond suffered due to Argentina failing to get breather from the Court on debt restructuring with hedge funds that is threatening to put them into a default.
Comments
Leave a Reply
You must be logged in to post a comment.