Argentina’s stock rally narrows to oil as rest of economy slows
Gap between energy stocks and the rest of the economy has been widening since Milei won congressional midterm elections in 2025. Leer más
Argentina's stock market rally is increasingly focused on the energy sector as other parts of the economy struggle, according to market analysts. The S&P Merval index, Argentina's benchmark, has fallen 9% in 2026 measured in dollars, slowing from a previous surge that began in 2023. Only energy-related companies, primarily those involved in shale oil production in the Vaca Muerta fields, are showing strong gains this year.
Banks, construction firms, and consumer-oriented businesses have all underperformed. Analysts attribute the energy sector's success to rising oil prices and strong performance from state-owned oil company YPF, which saw its production increase by nearly 50% in the second quarter due to high oil prices. The gap between energy stocks and the rest of the economy has widened since President Javier Milei's party won congressional elections in 2025, with energy stocks more than tripling since then while other sectors lagged.
The divergence in stock performance reflects a similar split in the broader economy, with economic activity declining 1.4% in July and 2.9% from the previous month.
Written by urgent.news from Buenos Aires Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
