The Argentine stock market rises this Thursday due to opportunity purchases, after a strong collapse at the beginning of the week that occurred after the surprise victory of the ruling party Sergio Massa in the first round of presidential elections before the liberal Javier Milei. Meanwhile, the international market is trading slightly negative following the release of US activity data, which exceeded expectations and puts pressure on the Fed when making a rate decision.
The index S&P Merval falls 0.69%, to 681,486.4 units this Thursday, after having climbed 4.91% on Wednesday, after a drop of 18.32% between Monday and Tuesday.
Stocks are mostly down this Thursday. Those that fell the most are Telecom (-5.57%), Supervielle (-4.42%) and Cresud (-4.30%). Meanwhile, those that rise are a minority, which do so by up to 5.16%, led by Ternium, Aluar (+5.05%) and Transportadora Gas del Norte (+3.47%).
What’s happening in the local market
The second electoral round will be on November 19 and the new president will take office on December 10. Bullrich and Pietri announced their support for Milei and clarified that there was no co-government agreement. Larreta and the UCR will not support any candidate in the runoff, like the civic coalition.
“Still With the support of the toughest wing of the PRO, it seems difficult for Milei to emerge victorious, although it clearly increases his chances.. After Sunday’s surprise, the free exchange rate fell sharply considering that the possibility of dollarization is reduced, and the union of some sectors of the PRO should also help the most radical ideas lose strength,” says a report from Banco CMF.
Massa, as Minister of Economy, defends the function of the peso as currency, while Milei advocates the dollarization of the economy and the elimination of the central bank (BCRA). And, in this short-term scenario, analysts recommend taking a position in securities that adjust by CER.
A new Treasury debt auction is expected to take place today. The maturities are $505,000 million and correspond to Ledes and Letras Dólar Linked. On the other hand, for three days the Central Bank (BCRA) has accumulated a positive balance in the Single and Free Exchange Market (MULC) and this Wednesday it bought US$15 million; reducing accumulated negative balance to US$606 million so far this month.
Argentine shares on Wall Street
WhileArgentine shares on Wall Street rise up to 2.8%, led by Transportadora de Gas del Sur, Telecom (+2.31%) and IRSA (+1.66%). Meanwhile, those that fell the most are Supervielle (-1.96%), Despegar (-1.70%) and Mercado Libre (-1.16%) on a day in which the international market operates slightly negative because the US activity exceeded expectations and puts pressure on the Fed when making a rate decision.
Source: Ambito
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