An exchange traded fund that invests in Argentina’s stock market is being hit by the government’s plan to take over Repsol oil and gas unit YPF.
Investors had been worried about the clash between the government and YPF, the nation’s largest oil and gas company. Argentina has been suffering from a steep decline in oil and gas production.
“The move to nationalize Argentina’s largest oil and gas company on Monday marked the culmination of a months-long battle between Repsol and the government of President Cristina Kirchner,” WSJ.com reported.
Repsol said it plans to fight the government’s move to take over YPF, according to the report.
The Argentina ETF had 6.2% of the portfolio in YPF as of April 16, according to Global X.
Global X FTSE Argentina 20 ETF