Argentine Stocks Soar 27% on Bessent Boost; Bonds Jump 8%
Argentine ADRs jumped as much as 26.9% on Wall Street, led by banks: Grupo Supervielle, Grupo Financiero Galicia (+21.7%), and Banco Macro.
Quick overview
- The market showed optimism after Economy Minister Luis Caputo's delegation returned from Washington, supported by U.S. Treasury Secretary's $20 billion swap confirmation.
- Scott Bessent highlighted Argentina's severe liquidity issues but noted strong international support for its fiscal strategy, particularly from the U.S.
- Argentine ADRs surged up to 26.9% on Wall Street, driven by bank stocks, reflecting investor optimism ahead of legislative elections.
- Dollar bonds experienced significant gains, with analysts suggesting that Argentina's country risk may have dropped below 1,000 basis points.
The market turned optimistic following the return of Economy Minister Luis Caputo’s delegation from Washington and fresh support from Scott Bessent. U.S. Treasury Secretary confirmed a $20 billion swap and that his department had intervened in Argentina’s foreign exchange market, defending the sustainability of the country’s exchange rate system.
Bessent noted that Argentina is “facing a severe liquidity moment” but highlighted that “the international community, including the IMF, unanimously supports the country and its prudent fiscal strategy, though only the United States can act quickly.” He confirmed that the U.S. Treasury purchased Argentine pesos today.
Today’s gains reflect the U.S. Treasury’s dollar sales through Banco Santander, calling it a justified rally despite ongoing volatility ahead of legislative elections.
Bessent also emphasized that U.S. leaders are eager to strengthen ties with Argentina under President Javier Milei’s leadership, praising Argentina’s disciplined fiscal policies and calling the exchange rate bands “fit for purpose.”
ADRs and Local Stocks Soar
Argentine ADRs jumped as much as 26.9% on Wall Street, led by banks: Grupo Supervielle, Grupo Financiero Galicia (+21.7%), and Banco Macro (+17.5%). Market analyst Speroni explained that banks often lead gains in anticipation of agreements, suggesting investor optimism.
The S&P Merval in dollars climbed 10.9% to 1,307.30 points, its second-highest level in a month, while the peso-denominated index rose 5.8% to 1,924,930.02 points. Notable local stocks included Metrogas (+17.1%), BYMA (+16.6%), and Supervielle (+16.3%).
Bonds and Country Risk
Dollar bonds rose sharply, led by Bonar 2030 (+8.1%), followed by Bonar 2035 (+7.8%) and Global 2035 (+7.2%). Analysts anticipate that Argentina’s country risk may have fallen below 1,000 basis points, though official figures are not available today.
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