Argentina’s Stock Market Drops 5% Amid Profit-Taking

In New York, Argentine stocks also drop by up to 5.5%, while the country risk rises to 563 basis points.

The S&P Merval faces profit-taking on Wednesday, January 8, but has risen 9% in U.S. dollars so far this month.

Argentine stocks traded on Wall Street also lose up to 5.4%, while dollar-denominated bonds experience broad declines. The country risk reaches 563 basis points following a correction by J.P. Morgan.

Argentine Stock Market Performance

In this context, the S&P Merval falls 2.1% to 2,763,658.29 points. Among the leading stocks, the biggest losses are seen in: Edenor (-6.8%), Telecom (-6.2%), Cresud (-4.8%), Central Puerto (-4.6%), and BBVA (-3.8%).

In New York, Argentine stocks are experiencing profit-taking, with declines of up to 5.5%, led by Edenor, followed by Telecom (-4.1%) and Central Puerto (-2.1%). The government faces the largest sovereign dollar bond payments of the year, totaling around $4.341 billion on Thursday, according to data from the Congressional Budget Office (OPC).

These payments correspond to bonds restructured in 2020 and include both principal and interest. The bonds paying coupons include Bonares with Argentine law (AL29, AL30, AL35, AL38, and AL41) as well as Global bonds, issued under foreign law and denominated in dollars (GD29, GD30, GD35, GD38, and GD41) and euros (GE29, GE30, GE35, GE38, GE41, and GE46). In this context, country risk rises to 563 basis points, according to J.P. Morgan’s measurement.

Javier Milei’s Statements

In statements made today, Argentina’s president Javier Milei said:

“We will do it. We have a lot of hope of being able to lift the currency controls this year,” said President Javier Milei. He also expressed his willingness to reduce taxes, promised the economy will grow by about 5% next year, and stated that his dream of closing the Central Bank (BCRA) is becoming increasingly closer.

He spoke about economic growth, emphasizing that “the recovery of real wages, pensions, and the recovery of stocks are driving economic activity.” When asked about the tax burden, he responded, “I have no problem lowering taxes more, just tell me where to cut.”

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Ignacio Teson
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Top
FX
Crypto
Commodities
Indices
Start Trading

82% of retail CFD accounts lose money.