In the midst of the exchange rate pressure marked by the complex economic and political scenario, shares plummet as do ADRs.
The stock market deepens fall this Thursday, October 19, due to taking profits after the evident hedging of positions prior to the presidential elections on Sunday, in the midst of exchange rate pressure marked by the complex economic and political scenario.
The leading index S&P Merval lose a 5.4%to 755,598,220 unitsafter losing 3% on Wednesday when the market recorded its intraday historical maximum of 834,791.35 units and accumulated a rise of 50% in 10 consecutive rounds.
All this, in a context of acceleration inflationary with almost 140% in the last 12 months, where on Sunday the next president will be decided at the polls. According to the latest polls, the candidates with the greatest possibilities are the libertarian Javier Mileithe Minister of Economy Sergio Massa of the ruling party, and the candidate for Together for Change, Patricia Bullrich.
Shares and ADRs
In the leading panel, shares plummet up to 10.9% led by Aluar, Ternuim (-8.1%), Transportadora de Gas del Norte (-7.6%), Transener (-7.1%) and Edenor (-6.7%).
In Wall Street local papers fall up to 8.3%, led by Cresud, YPF (-6.3%), Edenor (-6%), Pampa Energía (-5.3%) and Telecom (-3.9%).
Tension in the Middle East
In addition to the uncertainty of the local panorama, there is the escalation of the war between Israel and Hamas. Now, a broader conflict could cause another shock to global growth and stop disinflationary forces in their tracks. The market reaction was modest so far, but that could change.
The possibility of greater Iranian involvement and a US response that considers an increase in sanctions on Iranian oil is in the spotlight. Oil rises 18 cents to US$87.45 on Wednesday.
Source: Ambito
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