In this optimistic context, the S&P Merval stock index climbed 6.01% as a provisional closing, reaching new all-time highs.

The Argentine stock market closed higher this Friday, May 3, renewing historic highs, a day after the Central Bank (BCRA) announced an unexpected cut in its reference rate and the Chamber of Deputies approved the so-called “Bases Law” promoted by the government this week.

In this optimistic scenario, the S&P Merval stock index climbed 6.01% as a provisional closing, reaching new all-time highs. Among the stocks that rose the most were Banco BBVA (+9.1%), Ternium (+8.9%), and Banco Macro (+8.3%).

Investors seek refuge in the stock market as it still appears attractive with good chances of upward movement at a time when inflation is slowing down. It is worth noting that on Thursday, the BCRA lowered the monetary policy rate to 50% annually, marking the third consecutive cut since mid-April and the fifth since President Javier Milei took office in December last year when this rate was 133%. The main reason behind this new cut would be that the economic team does not feel comfortable with the amount of pesos in the economy to lift the currency controls. Given the significant slowdown in inflation, the BCRA seeks to keep the real interest rate in negative territory.

In the New York Stock Exchange, Argentine stocks also surged strongly, led by Banco BBVA, which climbed 9.3%, followed by Telecom, which rose 8.5%, while Mercado Libre advanced 6.56%. All local companies listed on Wall Street were up this Friday, with the exception of Despegar (-0.6%).