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The main index of Argentina is falling sharply again, accumulating a 23% decline in a month

the S&P Merval index of the Buenos Aires Stock Exchange (BYMA) fell by 3.3%. Dollar exchange rates continue to decline.

Gabriel Micillo•Tuesday, March 5, 2024•1 min read

The S&P Merval index of the Buenos Aires Stock Exchange (BYMA) was down 3.3% at 1,013,068 points.

On Tuesday, March 5th, the Buenos Aires stock market records its second consecutive decline (measured in pesos) and has already accumulated a 23% decrease in the last month. The initial reaction of the leading panel on Monday to President Javier Milei’s speech at the opening of the ordinary sessions of Congress seemed to be well-received.

However, sentiment in the stock market changed direction towards the end of the previous session and extended into Tuesday.

In this context, the S&P Merval index of the Buenos Aires Stock Exchange (BYMA) fell by 3.3% to 1,013,068 points, marking a decrease of 23% from its nominal peak at the close of February 2nd of 1,316,204.45 units.

Thus, the main decreases of the day are for Transener (-6.5%); Aluar (-5.3%); and Transportadora de Gas del Norte (-5.2%). The stock market index requires structural reforms for the country to continue growing, such as foundational laws and changes in the rules of the game. The market has risen since the previous administration, and to sustain that momentum, laws are needed to materialize the proposed changes.

Meanwhile, Argentine stocks trading on the New York Stock Exchange are operating with a mixed trend. The main decline is for Ternium (-1.3%); Telecom Argentina (-1.1%); and Banco Supervielle (-0.7%). Meanwhile, the main gains are for Central Puerto (+5.2%); Tenaris (+4%); Loma Negra (+2.5%); and BBVA (+2.1%).

The MEP dollar and the “Contado con Liquidación” (CCL) dollar exchange rates continue to decline. This occurs amid a significant accumulation of reserves, doubts about the pace of the official dollar’s crawling-peg, and the initial consequences of the recession. Investment suffered a year-on-year decline of 14.5% in January.

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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