Argentina Markets: Merval & the Peso — August 25, 2026

On Monday, Argentina's Merval index, the country's main stock index, gained 2.81% to close at 2,995,129 points. This was a welcome turnaround after a series of election-related sell-offs that had driven the index down nearly 9% over the previous month. Among the top gainers were banks, with Grupo Galicia up 5.0%, Banco Macro up 5.4%, and BBVA Argentina up 5.1%.

The peso, however, weakened to 1,510 per US dollar, marking its weakest level in a year. Country risk, which measures investor nervousness about Argentina's financial situation, remained above 500 points, indicating ongoing uncertainty. Investors returned to Argentine bank stocks, anticipating that the reform agenda would persist despite the upcoming elections.

Nonetheless, the rally was seen as a tactical rotation rather than a complete shift in sentiment, as the index is still around 8.79% below its level from a month earlier. The outcome for Tuesday will hinge on whether investors maintain their bets on financial sector stocks or if the peso's weak performance and a significant bond maturity later in the week prompt a retreat.