The market shows increasing confidence that Argentina will meet its debt obligations, leading to a rise in bond prices and a decrease in country risk, which is at its lowest level since July 2019.
A more favorable international environment for Argentina, along with the consolidation of financial surplus and accumulation of reserves, has contributed to investors' optimism. On this day, notable gains were seen in the shares of Transportadora de Gas del Sur (+5.8%), Central Puerto (+4.4%), Pampa Energía (+3.8%), and Telecom Argentina (+3.8%).
According to analysts, the optimism among investors stems from progress in the economic stabilization plan. The drop in inflation to 2.7% in October is also a cause for celebration among investors, as it reflects that the economic program is beginning to bear fruit. Additionally, the government announced another consecutive month of financial surplus, which boosts confidence in the fiscal consolidation process and deregulation reforms. In the midst of earnings season, results have further propelled the S&P Merval.
Argentine stocks listed on the New York Stock Exchange (ADR) also trended upward. Bonars rose by 2.03% (AL41D) and Globals by 3.64% (GD46D).
Just two weeks later, the elections surprised with the opposition's victory, causing country risk to soar from 872 to 1,467 basis points, quickly surpassing 2,500. The debt securities have reached their highest values since the 2020 debt restructuring.
Bonars have increased by 2.03% (AL41D) and Globals by 3.64% (GD46D). Argentine stocks listed on the New York Stock Exchange (ADR) have also shown growth. According to analysts, the optimism of investors is due to advances in the economic stabilization plan.
On the third day of the week, country risk stands at 800 basis points, a level not seen since July 31, 2019, when it was at 781 basis points. At that time, the country was experiencing a period of uncertainty due to the presidential contest between Mauricio Macri and Alberto Fernández. The reduction of inflation to 2.7% in October is also a cause for celebration, as it indicates that the economic program is starting to show results. Furthermore, the government has announced another consecutive month of financial surplus, which reinforces confidence in the fiscal consolidation process and deregulation reforms. In the midst of earnings season, results have further boosted the S&P Merval.
