Argentina Stocks Dip 0.3% as Risk Eases | Argentina Market Report, Oct 20
Argentina's MSCI Merval slipped 0.3% to 97,942 on Tuesday as country risk eased to 672 basis points after a 710 spike. Peso, ADRs and central bank buying. The post Argentina Stocks Dip 0.3% as Risk Eases | Argentina Market Report, Oct 20 appeared first on The Rio Times .
On October 20, Argentine stocks experienced a minor decline of 0.3%, settling at 97,942 points on the MSCI Merval index. The index, which replaced the S&P Merval on October 19, had its second session of trading after the update. Country risk, the extra yield investors demand on Argentine dollar bonds over US Treasuries, started the day at a high of 710 basis points but fell to 672 by the end of trading, three points below Monday's level.
Analysts noted a strong intraday reversal across most assets. For US holders of Argentine ADRs, the intraday reversal indicated that the morning scare had subsided, but the debt premium remained close to a one-year high. Throughout the trading session, the peso continued its downward trend, with both the wholesale dollar and blue dollar rates reaching multi-day highs.
The central bank's purchases of US dollars helped maintain its reserves at US$50.201 billion. The market data showed mixed performances for individual companies, with some like Globant rising while others such as Satellogic fell. The next Argentine presidential election was priced at 47.5% for Javier Milei, 32.5% for Axel Kicillof, and 11.6% for Sergio Massa, with a 2.5% chance of Milei leaving office before 2027.
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