YPF shares in Argentina log 30% weekly plunge

LOS ANGELES (MarketWatch) � Friday�s trading session in Buenos Aires saw a rise in shares of YPF SA, but the shares still logged their worst week on record as Argentina pushed forward with its attempt to take control of the energy producer.

Argentina�s Merval equity index AR:MERV �, meanwhile, turned lower, ending Friday with its sixth consecutive decline and capping its biggest weekly loss since mid-November. The Merval fell 6.5% for the week.

Contributing to Friday�s loss were shares of steel tubes maker Tenaris TS �and locally traded shares AR:APBR �of Brazilian oil company Petrobras, down 2.5% and 0.4%, respectively.

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YPF�s shares AR:YPFD �closed the daily session up 2.5% at 82 pesos ($18.61). The move followed Thursday�s 5.1% gain, the first win for the shares in five sessions. However, the shares still traded at three-year lows.

The stock sank 31% this week, during which the Kirchner administration sent a measure to Argentina�s Congress for approval to expropriate a 51% stake in YPF.

The European Union parliament on Friday became the latest entity to criticize Argentina for its move to take control of the oil and gas producer, whose majority owner is Spain�s Repsol YPF SA ES:REP � REPYF �.

The parliament in a statement said it �deplores� Argentina�s decision to expropriate YPF, and called on the European Commission �to explore any measures to avoid such situations in the future, including the partial suspension of tariff preferences.�

Also Friday, Argentina�s Planning Minister Julio de Vido reportedly said talks are being held with Brazil�s state-run oil producer Petrobras PBR �for the return of an operating concession to Petrobras by the Neuquen province in Argentina.

Argentina�s President Cristina Fernandez de Kirchner has accused the energy industry of not investing enough in exploration and production. That, she said, has resulted in Argentina increasing its consumption of foreign oil.

Repsol, the Spanish and U.S. governments, along with Chile, Colombia and Mexico have condemned Argentina�s efforts to seize control of YPF. The expropriation measure on Wednesday won approval by a Senate committee and a full vote in the Senate is slated for April 25.

Repsol�s stake could be cut to 6% from 57% if the legislation is approved, Moody�s Investors Service noted this week. Argentina has brushed off Repsol�s demand that it be paid roughly $10 billion in compensation over YPF.

U.S.-listed shares of YPF YPF �on Friday rose 1.2% to $14.59, but tumbled 34% on a weekly basis.

In Sao Paulo, shares of Petrobras BR:PETR4 �edged up 0.1% on Friday, but notched a weekly loss of 1%. Brazil�s Ibovespa equity index BR:BVSP �lost grip of gains, ending Friday�s session down 0.2% at 62,494.08. It rose, however, for the week by 0.6%.

Mexico�s IPC MX:IPC �slipped 0.1% to 39,354.86, but held to a weekly gain of 0.6%. Chile�s IPSA CL:IPSA �picked up 1.2% on Friday to end at 4,594.44, and advanced 1.5% for the week.