Boston, MA 06/17/2014 (wallstreetpr) – Argentina-based national telecommunication service provider Telecom Argentina S.A. (ADR) (NYSE:TEO) joined other companies from the region to suffer one of the bad days in the New York Stock exchange on Monday. The sharp fall is more to do with the local issue than anything with the company’s performance.
Sharp Fall in Stock Price
The shares of Telecom Argentina S.A. (ADR) (NYSE:TEO) recorded 6.48% drop on June 16, and the volume is at least four times higher than the previous day trading. The stock had hit a year high of $23.21 only on June 6. For the current month of June, the Monday closing price indicated a fall of 6.5%. Compared to the 52-week high price, the drop represented 12.9%. Shares of Telecom Argentina had struck a yearly low of $13.11, and the June 16 closing price suggested that it was still higher by 54.2%.
This is in contrast to the previous month performance, where it gained 6.2%, and in April, the stock advanced 6.8%. For the current year too, shares of the company are still sitting with a gain of 17.3% braving the current weaknesses.
While the 50-day moving average price of $20.95 indicated a 3.5% drop from the closing price of June 16, the still is still trading higher by 10.7% over the 200-day moving average price of $18.27.
Volume & Reason
The volume of trading witnessed on Monday indicated that it was 4.5 times more than the preceding two days of trading volume of 65.1K and 63.8K shares. Compared to the three month average volume of 184.4K shares, Monday volume represented 1.3 times more over it. Similar is the case with the ten day average volume of 170.8K shares.
While there is no news from Telecom Argentina S.A. (ADR) (NYSE:TEO) to impact the stock price, no brokerage has voiced anything against Telecom Argentina shares. However, a recent court ruling on restructuring of bond with the hedge funds has resulted in bear hammering of stocks from Argentina.
