Argentine stocks on Wall Street soared by up to 51%, bonds gained 34%, and country risk dropped by 46%
Compartir:
The Argentine market closed a historic week, marked by an atmosphere of euphoria following La Libertad Avanza's resounding legislative victory. The numbers speak for themselves: the S&P Merval in dollars soared more than 50% in five days and closed October with a record monthly gain of 74%, the best performance in its entire history.
Meanwhile, Argentine stocks on Wall Street rose by an average of 51%, sovereign bonds in dollars surged up to 34%, and country risk plummeted 46.6%, settling at 657 basis points, its lowest level in more than four years. Even the wholesale dollar fell by $47 during the week, a clear sign that capital has regained confidence in the currency and the Government's economic program.
Javier Milei, presidente de Argentina.
Analysts agree: the magnitude of the financial rally can't be explained by a technical factor, but rather by the political and economic validation of the libertarian direction. Milei's victory consolidated the expectations of stability, fiscal balance, and trade openness that investors had been awaiting for years.
In New York, the ADRs of Argentine companies experienced a true bullish storm. Supervielle, Galicia, Pampa Energía, and Central Puerto led the gains, with increases exceeding 40% in some cases. In Buenos Aires, the S&P Merval surpassed three million points and became the best-performing index in the world in October.
The improvement also reached the State's financial front. With bonds now yielding below 10% annually, the international market has begun to discuss a possible gradual reopening of external credit, something unthinkable just weeks ago.
Javier Milei victorioso.
Meanwhile, the Central Bank maintained monetary discipline and allowed the exchange rate to accompany the decline in risk, without shocks or issuance. The Treasury, meanwhile, managed to release domestic liquidity without losing fiscal control, which fuels expectations of a more robust economic recovery in the coming months.
In summary, October was not just another month: it was the turning point when the market stopped looking at Argentina with distrust and began to bet on its future again. Confidence, capital, and investments are returning to the country, driven by leadership that put an end to improvisation and rhetoric.
