Argentina’s index extends gains while country risk rises for the first time in 7 sessions.

The stock market’s good performance is encouraged by investor purchases seeking to position themselves in assets amid an improvement in the country’s economic outlook.

The Buenos Aires Stock Exchange extends its bullish rally this Monday, March 25th, while dollar and peso-denominated bonds trade unevenly, causing the country risk to rise for the first time in seven sessions ahead of the Easter weekend.

In this context, the S&P Merval climbs 0.6% at the beginning of the week to 1,235,719.20 units, after rising by 14.8% in the previous week. The stock market’s good performance is driven by investor purchases seeking to position themselves in assets amid an improvement in the country’s economic outlook and by a higher flow of foreign investments into risk markets.

In the leading panel, stocks rise by up to 3.3%, led by IRSA, followed by YPF (+2.8%), Transportadora de Gas del Norte (+2.5%), and Transportadora de Gas del Sur (+2.2%). Meanwhile, the biggest decliners are Central Puerto (-2%), Mirgor (-1.8%), and Sociedad Comercial del Plata (-1.3%).

Part of the local market’s strength stems from the global trend of increased optimism, leading to more investments flowing into countries and sectors considered speculative. Additionally, hopeful local expectations contribute to this trend.

Argentina achieved a primary fiscal surplus of 1.23 trillion pesos (approximately 1.448 billion dollars) in February, amidst a sharp adjustment driven by President Javier Milei.

Despite last week’s political noise with the rejection of the mega-decree of deregulation of the economy in the Senate and rumors of conflicts between the vice president and the president, bonds continued to rise fueled by good news on various fronts domestically and a constructive international environment for emerging bonds.

The situation is particularly driven by the fiscal data for February, which shows a financial surplus for the second consecutive month despite the decline in revenue. This is further supported by the Argentine Central Bank’s reserve replenishment.

ABOUT THE AUTHOR See More

Gabriel Micillo

Gabriel is a certified public accountant graduated from UNNE (National University of the Northeast, Argentina) and a software developer, currently pursuing a Master's degree in Finance and Economics. With nearly 8 years of experience working for accounting firms and brokerage firms. Concurrently, he has produced economic and financial reports on the current state of regional economies for the clients of the establishments where he has worked. Additionally, he assisted colleagues like Ignacio Teson in the drafting and editing of articles on similar topics in English language.

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