The S&P Merval index focused on Argentine shares collapsed strongly to drilling 1,200 points in dollars.
The index S&P Merval, centered on Argentine actions, It is going through an extremely negative 2025, to the point that He suffered a strong fall that led him to erase almost the entire accumulated rise since President Javier Milei assumed, at the end of 2023.
From the historical maximum recorded in January of this year, The leading Byma panel contracted 51% in dollars to drill the 1,200 points. In this way, it is only 24% from the rank reached on December 11, 2023, when the new government landed. Before the collapse, the rise had exceeded 150%.
Politics impact on the S&P Merval
The situation worsened in mid -August, when political scandals on apparent bribes began to emerge, which affected market confidence in the ruling party. Then, in recent weeks, they emerged New casualties after the electoral results of the province of Buenos Aires (PBA)in which a clear defeat of the Government of Milei was exposed.
“The wheel of Monday 8/9 was the worst fall of Merval since March 2020, registering a decrease of 17% in hard currency, which resulted in one of the three worst falls for the Buenos Aires bag of the last 20 years,” They detailed from IOL.
“In this way, the week immediately after the elections in PBA left fallen of more than 25% in pesos (and about 6% and 30% in dollars). Thus, and despite the strong fall that Merval showed since the beginning of the year (50% in dollars), a less optimistic feeling predominates,” they added.
MERVAL BAG MARKETS BONDS ACTIONS
Argentine actions do not find the course
In this context, the most beaten Argentine actions, and the ones that most impacted on the S&P Merval, were those of the Banking sector. BBVA (BBAR) retreated 53% since January in dollars, Banco Macro (BMA) fell 54%, Galicia Financial Group (Ggal) collapsed 52% and Supervielle Group (SUPV), 63%.
Unfortunately, the local political context did not allow the papers to take advantage of the Federal Reserve of the US Federal Reserve (FED), discounted by the market in recent weeks, and consummated on Wednesday. “Argentina could not capitalize on the decline of external rate and continued dealing with the shock that implied worse results to those expected in the Buenos Aires elections,” they said from Outlier.
Looking ahead, the situation does not seem very encouraging. “As long as there are no great events abroad, the news linked to politics will dictate the humor of the local market to the mid -term elections. Therefore, we expect a volatile and unpredictable market, since surprises have been customary in the periods of suffrage,” said analysts of PPI.
Source: Ambito
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