Merval Gains 3.7% as Risk Falls to 599 | Argentina Market Report, Oct 5
Argentina’s Merval rose 3.7% to 2,869,488 and country risk fell 49 points to 599 as Brazil’s vote lifted assets. Read the wrap. The post Merval Gains 3.7% as Risk Falls to 599 | Argentina Market Report, Oct 5 appeared first on The Rio Times .
On October 5, Argentine stocks and bonds experienced a rally, driven by Brazil's market performance. The main index of the Buenos Aires exchange, S&P Merval, climbed 3.7% to 2,869,488 points. Argentina’s country risk, representing the additional yield investors demand for holding Argentine dollar bonds compared to US Treasuries, fell to 599 basis points.
Lower country risk indicates cheaper borrowing options for the state and companies. US investors also benefited, with Argentine ADRs and bonds jumping in tandem, signaling alignment with the regional mood. The Merval closed at 2,869,488 points, up 3.7% in pesos, after falling 4.4% the previous week and 7.1% in September. Argentine shares listed abroad rose by about 10%, while dollar bonds averaged a 2.1% gain.
Country risk declined by 49 points, or 7.6%, to 599. The wholesale dollar ended near 1,520 pesos, only slightly different from the previous day. Brazil's strong performance, with Flávio Bolsonaro securing a surprising lead in the first-round elections, propelled the rally. Despite a tough September, the rebound followed due to Brazil's market movements rather than changes in Argentine data. The calm peso market further facilitated the simultaneous rise in bonds and stocks.
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