The main index of Argentina, experiences gains of up to 8%

After learning about the financial surplus for the second consecutive month, the market becomes enthusiastic.

The Argentine stock market rises this Monday, March 18th, due to investor purchases, as they seek to position themselves in assets following an improvement in the country’s accounts reported by the Government, which announced that public finances had a financial surplus for the second consecutive month.

The S&P Merval index shows a 0.4% improvement and stands at 1,073,490.75 units, after recording a climb of 6.55% during the previous week.

In the leading panel, stocks are trading mixed. The biggest gainers are Central Puerto (+7.8%); Transporte de Gas del Norte (+6.9%); Edenor (+5.2%); and Transener (+5.1%), while the biggest losers are Grupo Supervielle (-2.8%); BYMA (+1.7%); BBVA (+1.4%); and Grupo Financiero Galicia (+1.4%).

The S&P Merval has gained 15% in pesos so far this year, while the balance in dollars is also positive, but only by 5%. The market achieved a significant correction resulting in a 28% loss in pesos, but it could resume the main bullish trend in the short term.

Libertarian Javier Milei’s government announced on Friday that the country achieved a primary fiscal surplus of $1.23 trillion (about $1.448 billion) in February, amid a sharp financial adjustment. This generates some enthusiasm in the markets.

However, politically, the rejection by the Upper House of Congress of the decree (DNU) deregulating the economy, issued in December by the president, creates uncertainty as it must now be considered by the deputies to determine its validity.

Dollar-denominated bonds rise by up to 2.6%, led by the Bonar 2038, followed by the Global 2035 (+1.4%) and the Global 2041 (+1.3%). Meanwhile, the only ones that decline are the Global 2029 (-2.1%) and the Bonar 2041 (-1.3%).

In this context, the country risk decreases by 17 units and falls below the 1,600 basis points mark to 1,594, according to J.P. Morgan’s measurement.