The stock market is trading lower this Monday, in an uncertain context ahead of the runoff. The most affected are financial and energy stocks.
The S&P Merval fell sharply this Monday, October 30 before the uncertainty generated by the runoff that will define the next president. If Sergio Massa wins, the market is worried that price regulations will continue, in the midst of a fuel shortage. While the libertarian candidate still raises doubts about his government plan. Besides, The Merval mediodo in foreign currency performed 700 points in dollars.
In that scenario, The S&P Merval index sank 9.7% and stood at 591,691,800 unitsafter losing 18.1% last week. Measured in foreign currency, it plummeted 693.60% to $693.60, the lowest in just over three weeks. Leading stocks plummeted 14.5%, by the hand of Aluar. They also fell harshly: Ternium (-14.4%), Transener (-12.7%), Supervielle bank (-12.4%), BBVA bank (-11.6%).
In dialogue with Ambitthe market operator Leonardo Svirsky He maintained that this fall in Argentine stocks is due to the fact that “The energy issue generates a lot of controversy and the latest statements from the Government did not go down well at all“. In addition, he expressed, “taking into account that we still have the runoff in between. Thinking that they could win and keep the subsidies, then this news is not good at all.”
For its part, Alejandro Bianchifounder of InvestmentAdvisor.comsaid: “The truth is that the economic prospects have worsened radically due to the shortage of gasoline and the expectation that the ruling party can take us to Venezuela, I think that unfortunately, that leads to investors to be very cautious“.
At the same time, he mentioned, “the increase in rates by the Central Bank also cools the Economy in addition to lowering the dollar, and incentives are created for carry trade more than to take risk in stocks. But I think they are momentary effects, when November starts, the dollar will overheat again and with it other assets such as stocks.”
The Minister of Economy, Sergio Massa, in statements with La Nación, in response to the fuel shortage, said that “Either we take care of people’s pockets and have gasoline at $320, $350; or we release the prices and it goes to $800 mangoes” and added: “I heard Milei say that we have to release it. It means paying $800 pesos per liter of gasoline.”
Argentine shares on Wall Street
The ADRS of Argentine companies in New York are also trading with a majority downward this Monday, with drops of up to 7%. The action that loses the most is Central Portfollowed by Macro Bank (-6.4%) and Edenor (-5.5%). Meanwhile, the only one that goes up is Free market (+2.5%).
The New York stock markets are trading higher today and their main index, the Dow Jones Industrials, rises 0.82% to 32,683.87 points. For their part, the selective S&P 500 and Nasdaq technological indices advanced 1.05% and 1.11%, respectively, according to the Bloomberg news agency.
Source: Ambito
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