Recovery and Dismappointment on the Argentine Stock Exchange: A Glimpse into a Day’s Performance

On Thursday, the Argentine economy took a breath as stocks recovered, bonds fell slightly and the blue dollar remained above $1,400. The New York Stock Exchange was closed due to the U.S. Independence Day holiday, so Argentine stocks did not have an external reference of ADR movements.

The Merval index ended with a slight rise of 0.5%, representing an increase of 0.3% in dollars from the previous day. Marcos Natalucci from Rava stated that shares traded mostly positively but with some losses, with YPF rising by 0.1%, Grupo Financiero Galicia remaining unchanged, Pampa Energía gaining 1.7%, and Banco Macro gaining 0.3%. This marked the third consecutive recovery after a shock experienced by shares in the previous week.

While debt instruments moved in the opposite direction, closing with slight declines and leading to an increase in country risk to 1,523 points, it was not what investors were expecting on this day. They had anticipated that the Central Bank would make official new Letter of Monetary Regulation on Thursday which had caused alerts in the investment world but unfortunately no announcement was made and technical aspects of the standard are still being discussed with banks and various government actors.

On a day of low volume, Gustavo Quintana noted that operator at Central Bank completed purchases for US$22 million in exchange market approaching end of week with positive result of US$79 million despite U.S holiday had impact on local business volume which was lowest trading day this year .