Today, the Merval index, the most important in the country, has declined approximately 3%, accumulating an 11% drop in the last few days. The Merval index is usually measured in US dollars due to the high inflation in the country. The energy and banking sectors are the hardest hit.

The failure of Tuesday’s liberal reform law continues to destroy the value of Argentine stocks, which, despite everything, were among the best performers in 2022 with stellar gains.

On Tuesday night, the Argentine Congress rejected the most significant bill presented so far by Javier Milei, the country’s president. The objective of the bill was to overhaul the country’s legal foundations.

It contained over 600 articles, of which 400 were subsequently eliminated after several negotiations. 200 remained, but the lower chamber decided to discard them altogether. To be precise, in order to avoid total defeat, La Libertad Avanza, the president’s party, decided to withdraw the bill while it was still under discussion.

Stocks and bond prices had incredible performances from November to January under President Milei’s promised reforms, driven by anticipated sweeping changes and apparent popular backing. ETFs like Global X MSCI Argentina (ARGT) increased by 40%, while individual stocks like YPF, GGAL, and CEPU surged by 90%, 110%, and 77% respectively, among others.