Argentine stocks are on the rise, with an increase of up to 3% in New York and 1.5% in Buenos Aires. This positive trend is due to the good results from the banking sector, which saw a local increase of up to 9%, primarily because of the resurgence of mortgage loans. The Merval stock panel has seen significant gains, with Banco Galicia being a standout performer with a 3% increase. Meanwhile, on the New York stock market, ADRs such as Galicia, Edenor, and BBVA have shown increases of 3.3%, 2.5%, and 2.4%, respectively, while others like Despegar, Globant, and Loma Negra have seen losses of 4%, 1.9%, and 1.8%.
In contrast to the gains made by stocks, bonds have been falling in Argentina. Public securities have averaged a decrease of 1% throughout April and May, with some exceptions like the AL 41 bond which fell by an average of 3.7%. Financial experts attribute these losses to rising interest rates and higher inflation rates in Argentina.
Despite this downward trend in bond prices, financial experts believe that successful negotiations with the opposition on key financial issues such as recovering Income Tax by governors will positively impact the market going forward. However, currency-wise, the blue dollar has fallen by five pesos since March to $1.040 at present value – representing an increase of just over two percent at wholesale level amidst rising inflation rates accumulated over several months now reaching about sixty percent rate for year end period..
