The stock market of Argentina It fell sharply on Monday in its first businesses due to urgent sales shot up after the surprise triumph of the extreme right in the primary elections from the country.
The leading stock index S&P Merval Buenos Aires lost 3.5%, to 463,471 units, at 1403 GMT, against its intraday record on Friday at 480,914.59 points.
OTC bonds fall sharply
On the other hand, Argentina’s over-the-counter sovereign debt traded with heavy losses on Monday in response to the unexpected victory of ultra-liberal candidate Javier Milei.
Sovereign bonds fell an average of 6%, in a supply market and without takers, given the doubts generated by the future of the third largest economy in Latin America. Dollarized issues led the trend.
“It is a totally unexpected result. Before the election, the market assigned a 5% chance that Milei would win the election.”said economist María Moyano Hidalgo, from Adcap.
“Offshore investors are very skeptical of the ability to implement the measures that Milei proposes. The first reaction of the market is not good”, added.
The country risk measured by the JP Morgan bank rose eight basis points to 1,914 units at 1440 GMT.
The ultra-liberal candidate Javier Milei was the candidate with the most votes on Sunday and the great winner of a presidential primary tinged with the anger and apathy of Argentines after a long economic crisis.
Source: Reuters
Source: Gestion
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
