BUENOS AIRES, Nov 26 (Reuters) - Argentine bank shares sank on Monday, bringing down the benchmark stock index, as local bond prices fell on fears that credit market losses will injure the U.S. economy weighed on stocks in New York.
The MerVal index .MERV of the 25 leading stocks ended off 0.95 percent at 2,190.82 points, dropping through a technical support level at 2,200 points. Volume was moderate at $49 million. Of active issues 17 advanced, 56 declined and 18 were unchanged.
Among the financial shares losing ground were Banco Macro (BMA.BA), down 2.31 percent to 8.02 pesos, and Banco Frances FRA.BA, which gave up 1.77 percent to close at 8.9 pesos per share.
“Most of the selling was concentrated in financial issues due to the strong fall in yields on U.S. treasuries, which made deepened the bad mood in emerging markets,” said Hernan Labrone, analyst at Fenix Financial Company in Buenos Aires.
Argentine government bonds also fell on the domestic market, responding to the same fears over the U.S. economy.
The dollar-denominated Par bond fell 0.97 percent while the Discount bond in pesos eased 0.68 percent.
The peso currency firmed 0.16 percent to 3.1625/3.1650 per dollar in informal trade between foreign exchange houses as measured by Reuters ARSB=. The peso closed flat at 3.1425/3.1450 ARS=RASL per dollar in formal interbank trade, where the central bank intervenes to keep the currency competitive. (Reporting by Walter Bianchi, writing by Fiona Ortiz; editing by Gary Crosse)