Sacyr Vallehermoso SA (SYV), the Spanish builder which holds 10 percent in Repsol YPF SA (REP), led stocks of companies with assets in Argentina lower after the country seized the local unit of Spain’s biggest oil company.
Sacyr fell as much as 10.5 percent, the steepest intraday drop since March 1, and traded down 5.5 percent at 1.9 euros as of 11:29 a.m. Repsol dropped 6.6 percent to 16.33 euros.
“This opens up a very dangerous path in which other companies with a presence there will face big short-term uncertainty,” Francisco Salvador, a Madrid-based strategist at FGA/MG Valores, said by phone today. “Yesterday’s decision by Argentina’s president is a symptom of the country’s own problems.”
Other Spanish companies with a big presence in Argentina include security services business Prosegur Cia de Seguridad SA and casino operator Codere SA. (CDR) Prosegur fell 3.6 percent to 42.96 euros and Codere slipped 0.9 percent to 6.49 euros.
Argentina President Cristina Fernandez de Kirchner ordered the seizure of YPF SA, Argentina’s largest crude producer, majority-owned by Madrid-based Repsol, after a dispute about slumping oil output and investments. She is sending a bill to Argentina’s Congress to take a 51 percent stake in the company. The Spanish government pledged to take “decisive” action against Argentina within days.
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