The main index of Argentina moderates enthusiasm but remains in positive territory; ADRs rise up to 7%.

The stock index of Bolsas y Mercados Argentinos (BYMA), the S&P Merval, starts the week with an upward trend, encouraged by demand for stocks.

In this way, the Buenos Aires stock index moderates enthusiasm at the start of the session and rises by 0.7%, reaching 1,222,957.71 units. This comes after gaining 2.6% last Friday. The leading benchmark reached a historical high of 1,334,440.11 units on February 5th.

The improvement is sustained “by the main ADRs, as they continue to be the preferred vehicles for traders to continue driving bets at the pace of favorable macroeconomic expectations.” The main increases are for Loma Negra (+3.1%), Cresud (+2.6%), Telecom Argentina (+2%), and BYMA (+2%). Meanwhile, the declines are for YPF (-1.1%), Banco Macro (-1.1%), and Transportadora de Gas del Norte (-0.4%).

The shares of Argentine companies listed on the New York Stock Exchange are trading strongly upwards. Leading the gains are Loma Negra (+7.1%), Irsa (+3.5%), Grupo Financiero Galicia (+3.3%), and YPF (+2.8%). Meanwhile, the declines, although marginal, are for Banco Macro (-0.3%) and Transportadora de Gas del Sur (-0.4%).

An important fact is that on Friday, the inflation number for March will be released by the statistics agency Indec. If the Consumer Price Index (CPI) for March, to be released this week, is around 10% as the government says, it would be lower than expected and represents a significant improvement.

However, the hidden side is that the recession may be greater than expected, acting as a price anchor. If inflation shows another sign of strong deceleration, it is very likely that there will be another interest rate cut.

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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