The financial rally continues: stocks and bonds are rising, the dollar is depreciating, and investors are celebrating
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Argentine markets are experiencing their third consecutive day of euphoria following the resounding electoral support for Javier Milei. This Wednesday, the S&P Merval index turned green again, with a 5% increase in pesos and more than 5% in dollars, consolidating a monthly rise of 65% in hard currency.
The "green wave" that broke out after the parliamentary elections also reached Wall Street: the ADRs of Argentine companies climbed as much as 13%, with Edenor and Central Puerto leading the gains. Meanwhile, sovereign bonds in dollars saw slight increases and country risk remained below 700 points, a level that was unthinkable just weeks ago.
Wall Street.
The foreign exchange front accompanied the optimistic climate. The wholesale dollar fell 2.3% and closed at $1,436, while at Banco Nación it dropped to $1,460. The decline is due to a greater inflow of foreign currency and the favorable expectations caused by the Treasury's debt auction. Analysts in the City agreed that the dollar's decline reflects a process of market "normalization" and greater confidence in official economic policy.
In sectoral terms, banks and public utilities companies were the big winners of the rally: their shares have accumulated average increases of between 40% and 50% in dollars so far this month. In just the first two trading sessions of the week, Merval's total capitalization increased by US$16 billion, reaching US$59 billion.
Caputo resaltó que el país cerró 2024 con cifras económicas sorprendentes.
From the financial sector, it is once again emphasized that the stock market reaction is not a simple rebound, but a political validation. Merval's surge was a direct response to the change in expectations and the repositioning of investors toward Argentine assets. The trend clearly shows a deep change in market sentiment. The combination of fiscal discipline, liberalization, and clear signals of stability has restored to the Argentine financial system a credibility that Kirchnerism destroyed.
While the opposition insists on apocalyptic speeches, the facts speak for themselves: the vote of confidence by Argentines in the ideas of freedom translates into growth, investment, and a country that is beginning to regain its place in the world.
