The Argentine stock market faced significant losses. American Depositary Receipts (ADRs) of companies trading on Wall Street plummeted by as much as 32%. This decline also affected sovereign bonds, pushing the country's risk indicator back above 500 basis points. The primary cause was statements by Economy Minister Luis Caputo confirming that the government has no plans to return to international debt markets in the short term. Furthermore, President Javier Milei reiterated his strategy of selling state assets to pay off debts. On the local front, the S&P Merval index also fell by 1.3% in pesos. Meanwhile, Vista's shares are under pressure due to news of a potential exit by the Abu Dhabi Investment Council, one of its major shareholders. The fund is reportedly set to sell a block of over 10 million shares via Goldman Sachs at a discount of up to 6.5%.
"The business climate was impacted after Economy Minister Luis Caputo confirmed that the government has no intention of returning to the international debt market in the short term," reported Agencia Noticias Argentinas. This news, combined with the president's comments on asset sales, heightened negative sentiment. In the fixed-income segment, Bonares bonds showed widespread declines, pushing the country's risk indicator to 506 basis points. Notable underperformers include Bioceres Crop shares, which hit a historic low of $1.14, affected by legal disputes and the loss of control over assets in the US.
