Argentina Stocks Fall 1.5% as Risk Rises | Argentina Market Report, Oct 22
Argentina's Merval index fell 1.5% to 97,993 on Thursday as US tech shares dropped and the country-risk premium on its debt rose above 700 basis points. The post Argentina Stocks Fall 1.5% as Risk Rises | Argentina Market Report, Oct 22 appeared first on The Rio Times .
Argentina's stock market experienced a decline on Thursday as global technology share sales withdrew and local country risk increased. The MSCI-based Merval index closed 1.5% lower at 97,993 points. The country risk premium on Argentine debt soared above 700 basis points, marking a 4% rise in just one day. The peso weakened 0.11% to 1,527.5 per US dollar.
Argentine companies trading on the New York Stock Exchange, or ADRs, suffered the most with a combined loss of 1.91%. The decline in Argentine assets underscores that their performance is influenced by global risk sentiment rather than solely local news. The Merval index, published on an MSCI basis, closed at 97,993 points after falling 1.5%.
US technology shares, including the Nasdaq, which lost about 2.6%, and the S&P 500, which dropped 1.21%, contributed to the sell-off. Argentina's August economic activity index, released by INDEC, fell 1.7% from the previous year. The rise in country risk above 700 basis points indicates that international investors are becoming more hesitant about Argentina's ability to repay its debt. The peso's decline was relatively small compared to the drop in stocks and ADRs.
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