Boston, MA 06/17/2014 (wallstreetpr) – Argentina-based financial services provider Banco Macro SA (ADR) (NYSE:BMA) witnessed one of the bad performances in the New York stock exchange on Monday and the chances of more losses is not ruled out on Tuesday. It appeared that the financial sector stocks from the region suffered one of the worst days of trading in the U.S. bourse. The court ruling on Argentia’s appeal seemed to have had its effect on the financial sector stocks.
Shares Fall
Banco Macro SA (ADR) (NASDAQ:BMA)’s stock dropped 5.85% on June 16, and a worthwhile number of shares changed hands as a result. Except that the financial stocks from Argentina fared poorly due to court order, there is no negative news from the company to impact its stock performance. Interestingly, there was also no fresh news on either reducing earnings or revenue estimates or the rating of the stock.
Banco Macro shares hit a high of $37.99 in a year only on June 11. It suggests that the stock plunged 16.5% based on $31.71, the closing price of June 16. In the current month, shares of the company managed with a slender gain of 0.25%.
Banco Macro SA (ADR) (NASDAQ:BMA)’s stock reached a low $13.63 in a year indicating that the stock closed 132.65% more than the lowest price during the 52-week period. In the month of May, the stock advanced 3.5%. Despite the recent losses, shares of the company gained 30.66% in the current year based on December 31 closing price of $24.27.
Volume of Shares and Possible Reason
The number of shares traded on Monday indicated that it was over 2.5 times higher than the preceding day trading of 143.6K shares and more than double from 313K shares recorded on June 12. It was also 1.76 times higher than the 3-month average volume of 178.3K shares and more than double from the average 10-day volume of 310.7K shares.
Despite the weaknesses witnessed on Monday’s trading, the closing price indicated that it was slightly above the 50-day moving average price of $31.68 and 18.9% higher than the 200-day moving average price of $26.67.
The downside pressure could be due to the court ruling against Argentina, which wanted debt restructuring with hedge funds. This has resulted in both stock and bond witnessing selling pressures.
