Argentina: Merval Rises 1.24% To Break Above 27,000 Points




Argentina: Merval Rises 1.24% To Break Above 27,000 Points

Merval, the main index of the Buenos Aires Stock Exchange, rose 1.24%, closing at 27,100.30 points, returning to the 27,000-point level after the International Monetary Fund (INF) has raised Argentina’s growth forecasts.

“After two consecutive sessions falling, the Merval rebounded and already accumulated a 3.8% increase so far in October,” said Viviana Bonifati, an analyst at Intervalores.

For 2017, according to the IMF, the Argentinean GDP growth estimate was raised to 2.5, from 2.4% in the previous report. For the next year, IMF also estimates a 2.5% growth, from 2.2% before.

Meanwhile, the Ministry of Energy released new data today revealing that Argentina’s oil production fell by 6% in August on an annual basis, while gas extraction decreased by 0.83% in the same comparison. Year-to-date, oil output receded 7.7%, while gas production dropped 1.02% between January and August.

At the end of the session, the central bank of Argentina decided to keep its main interest rate unchanged at 26.25%, given that economic data suggest that during September core inflation would not have broken the levels observed since May, while the overall index would be affected by regulated price increases.

The shares of Transener (-2.43%), TGN (-1.42%), and TGS (-1.31%) fell, while Agrometal (+6.63%), Cistanera (+5.26%), and Mirgor (+4.65%) rose.

The locally traded U.S. Dollar, meanwhile, reversed the slight rise it obtained earlier and fell 0.11%, closing at 17.42 Argentinean pesos. The session was marred by the low volume operated due to yesterday’s holiday in the United States.


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