| Headline: Argentina - Death of a stock market Source: Euromoney Date: March 2000 Author: Brian Caplen Brokers in Buenos Aires are in despair. Delistings by foreign companies of their Argentine subsidiaries have cut the market in half and trading has dwindled to a fraction. Despite this, a badly needed restructuring of the bolsa is being held up by conservatives who fear increased competition. While they argue, Argentine investors are clicking their mice and buying US mutual funds. Local companies are voting with their feet and listing on Nasdaq. By the time the traditionalists come to their senses the market could be dead. Brian Caplen reports Small unprofitable brokers in Buenos Aires are playing a waiting game. They know their days are numbered and that they have neither the skill nor the capital to survive in the global era. When the trading floor of the exchange is finally closed, as everybody agrees it some day must be, many small firms will go with it. But in the meantime they are in a position to hold up reform of the Argentine stock market and prevent it from responding to change. |