Argentine Stock Market Gains Strength Amid Investor Caution and Risk Increase

Argentina's stock market regained strength on Thursday, driven by buys after a four-session decline. The S&P Merval index rose 0.61%, while the country's risk rating increased by one point to 751 points. The peso depreciated 0.05% against the dollar, with the central bank maintaining its intervention. The government raised $4.17 million through a domestic bond auction, with a roll-over of 165%.

Argentina's stock market experienced a notable rebound on Thursday, with the S&P Merval index gaining 0.61% to close at 2,545,240.10 points [1]. This upward trend came after a four-day decline, during which the index had lost 1.70% of its value [1]. The country's risk rating also improved by one point, reaching 751 points [1].

The energy sector led the way in the stock market recovery, with shares in leading companies experiencing significant gains. Telecom Argentina S.A. (TECO2) and Cresud S.A. (CRES) were among the top performers, with their shares rising by 2.07% and 3.24%, respectively [1].

Despite the positive news from the stock market, Argentina continues to grapple with high inflation rates and economic uncertainties. A recent report revealed that 71% of people in the country are using less and less cash, reflecting the challenging economic conditions [1].

In an effort to raise funds, the Argentine government held a domestic bond auction on Thursday, generating $4.17 million in revenue [1]. The central bank also maintained its intervention in the foreign exchange market, with the peso depreciating 0.05% against the dollar [1].

The rebound in Argentina's stock market comes amid mixed signals from other regional markets. Brazil's Ibovespa (IBOV) experienced a decline of 1.39% on Thursday, with shares in consumer staples and information technology sectors taking a hit [1]. Colombia's Colcap (COLCAP) fell 0.58%, primarily due to the decline in BanColombia S.A. (BCOLO) shares [1].

On the international front, Wall Street saw a lot of instability near a key technical level, with traders awaiting the highly anticipated jobs report for guidance on the Federal Reserve's next policy steps [1]. The dollar also fell with bond yields, and there was a fight around the S&P 500's 200-day moving average [1].

References:
[1] Bloomberg. (2022, December 1). Argentina's Stocks Rally Continues; NYSE Closes Mixed Ahead of Jobs Data. [https://www.bloomberglinea.com/english/argentinas-stocks-rally-continues-nyse-closes-mixed-ahead-of-jobs-data/]