The S&P Merval index advanced 6.2% this Monday, driven by the announcement from United States Treasury Secretary, Scott Bessent, who confirmed the financial support for Javier Milei's government.
The combination of local measures, such as the suspension of agricultural export duties, along with the prospect of U.S. assistance, caused a strong wave of optimism in the Buenos Aires Stock Exchange.
Banks and energy companies among the most prominent
Within the leading panel, significant increases were observed in bank and energy company stocks:
BBVA (BBAR): +17.03%
Grupo Supervielle (SUPV): +11.2%
Transportadora de Gas del Norte (TGNO4): +8.1%
YPF: +5.9%
Transener (TRAN): +6.4%
Pampa Energía (PAMP): +4.6%
Banco de Valores (VALO): +4.6%
Other stocks also posted gains: Telecom Argentina (TECO2) +0.5%, Ternium (TXAR) +0.7%, and Transportadora de Gas del Sur (TGSU2) +3.7%.
El Merval sube un 6,2% tras los anuncios del Tesoro de EEUU
The Bessent effect on investor confidence
The U.S. Treasury Secretary emphasized that Argentina is a "systemically important" partner and assured that all support options are on the table, from swap lines and currency purchases to operations through the Exchange Stabilization Fund.
Bessent stressed that they trust Milei's reforms and that "Argentina will be great again." His statements reinforced investors' appetite for local assets, both in bonds and stocks.
El Merval sube un 6,2% tras los anuncios del Tesoro de EEUU
General optimism in the markets
The Merval's rise adds to the improvement in sovereign bonds, which climbed as much as 11%, the historic 21% drop in country risk, and the collapse of financial dollars, with declines of up to 8%.
Overall, the outlook points to a scenario of greater confidence in the economic direction and in Argentina's ability to stabilize its financial situation with external support and pro-market domestic measures.
