In previous years, as a result of the rise in the exchange rate and the ups and downs in the local economy, many investors preferred to position themselves in assets with support abroad, but that dynamic changed.
The cedars were the instruments chosen by the Argentines to safeguard their savings in the years prior to the presidency of Javier Milei, but this dynamic changed when last year Argentine stocks entered the podium as the most traded in equities.
Specifically, Merval shares (leading panel plus general panel) represented 52.23% of the volume traded on the Buenos Aires Stock Exchange variable income last year. To illustrate in December 2024, 61% of the variable income on the Buenos Aires Stock Exchange corresponded to Merval shares.
It should be noted that in 2024, Argentine assets closed a historic year, marked by the change of Government and profound economic reforms that redefined market expectations. Shares recorded gains of more than 300%, mainly driven by the financial sector.
Exceeding all expectations and in a context where the super weight was the norm, he BYMA’s leading panel recorded an advance of 170% in pesos in the year, reaching 2,533,634.65 units.
This rally, which occurred in much of 2024, was supported by the abrupt turn in fiscal and monetary policy, which maintained the zero deficit and the cleaning up of the Central Bank’s balance sheet as its premise. These measures generated widespread optimism in all sectors, but the main protagonist of the year was the financial sector. Not only did its lending capacity increase, but widespread growth was also seen in publicly traded companies.
What happened the previous years
If we take into account 2023 Cedears had represented more than 58% of what was traded in equities that year. In fact, there were previous years when these instruments They came to represent around 70% of the volume.
What happened is that as the cedars They represent parts of shares listed abroad, they remain outside the vagaries of local politics. In fact, in years with strong devaluation, as they are tied to the CCL dollar, they rose for two reasons, because the company in the place of origin had it, and driven by the exchange rate.
Source: Ambito
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