In the post-triumph scenario Javier Milei As the new President, the euphoria in the stock market was noticeable. Different Actions have fluctuated considerably, showing in some papers a meteoric rise.
A notable example is the case of the papers of the Supervielle Bankwhose value has risen almost 100% in dollars only during the month of November.
These financial securities have experienced a 100% increase in pesos in the Merval index of Buenos Aires and a 97% increase in dollars in the ADR listed in New York, consolidating an impressive performance throughout the month. Looking ahead to the annual outlook, over the course of 2023, These assets have registered an increase of 296% in pesos locally and 63% in US currency on Wall Street.
This phenomenal performance is found within the financial sector, which has been subject to a notable recomposition in its values after the appointment of Luis Caputo as head of the Ministry of Economy. The recent meeting between Caputo and the banks raised positive expectations about the way “peaceful“in which the disarmament of the liquidity bills will be carried out (Leliqs) under the new government.
The market interprets that the financial sector will not face an abrupt drop in the decoupling of the “snowball” of Leliqs, which has now been transformed into Daily Passes. This contrasts with the initial expectations after Milei’s victory and the dollarization proposals during the mandate of Emilio Ocampo in the economic area.
Regarding the extraordinary increase of almost 100% in dollars in Supervielle shares, it is argued that there are two fundamental reasons behind this growth. First, the valuation of banks in general had been lagging the market, and some uncertainties remain about how the entire financial reengineering will be carried out.
Secondly, the significant increase in the specific case of Supervielle is due to the fact that it was one of the banks with a lagging value and possibly with less liquidity. As investors flocked to it, its price began to rise. It is essential to note that this increase originated mainly from New York, where a greater impact on the share price was observed.
November: historic month for Argentine stocks with increases of up to 100%.
“November showed behavior clearly bullish for stockswith a notable change in the market mood after the election results” revealed Tavelli in his report. The banks showed a jump of up to 100% for Banco Supervielle, which entered the monthly top ten. “Banking leaders like Galicia Financial Group and Macro Bank they had an improvement of the order of the fifty%“highlighted the same report.
Fernando StaropoliAccount Executive rava commented on the performance of the local market: “November closed with a record for the annual record of the Merval index that achieved a profit of 45% in dollars in the month of electoral definition“. “The almost complete recovery of prices in the leading panel and a significant increase in the value of dollarized fixed income“he added.
A report of Invest in the Stock Market (IEB) indicated in this regard that “the 11% differential obtained in the second round served as the basis for provide sustainability to a potential construction of governance. We believe that this is the point that the market carefully reads to form its expectations. The days that have been happening since 19N are slowly confirming a more pragmatic and flexible Milei who understands that to carry out a shock plan, the political construction of support is imperative.
Source: Ambito
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