Argentina: Stocks surge up to 10%; bonds hit post-restructuring peak.

The S&P Merval index advances 2.2% to 1,148,865.86 units, after jumping 5.4% in the previous session.

Written by: Ignacio Teson • Tuesday, March 19, 2024 • 1 min read

• Last updated: Tuesday, March 19, 2024

Following the fiscal surplus data for February, and despite the Senate’s initial rejection of the deregulation decree, the market is experiencing strong improvements this Tuesday.

The Buenos Aires stock exchange extends its positive streak this Tuesday, March 19th, as well as Argentine companies listed on Wall Street, while the AL30 bond surpassed $50 and the country risk reached a new 30-month low.

Traders and analysts agree that the local financial market seeks to align with favorable macroeconomic indicators, despite the political disputes faced by the new government of Javier Milei.

The S&P Merval index advances 2.2% to 1,148,865.86 units, after jumping 5.4% in the previous session, driven by energy companies.

In the leading panel, the stocks with the highest gains are Mirgor (+10.4%), Grupo Supervielle (+6.5%), and Transener (+4%). Meanwhile, the only ones declining are Transportadora de Gas del Norte (-1.6%) and IRSA (-0.8%).

This Tuesday, the trade balance for February is released, and it is expected to be the third consecutive month with a positive balance. The government has just reported an unusual fiscal surplus in the first two months of the year.

Last week, the Senate rejected a mega-decree (DNU) that deregulates the economy promulgated in December by Milei, a severe setback for government objectives, although it remains in force until its next consideration in the Chamber of Deputies.

In favor of macroeconomic improvement, although with serious social risks due to the high poverty and indigence suffered by Argentinians, there is less exchange rate pressure due to a firm foreign exchange sale from the agricultural sector, which has recently allowed the BCRA to exceed the purchase of $10 billion for its depleted net reserves.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.