Galicia Financial Group (GGAL) Shares Plunge 7.69% Amid Economic Uncertainty

Galicia Financial Group (GGAL) shares fell 0.66% today, marking the fourth consecutive day of decline, with a total drop of 7.69% over the past four days. The share price hit its lowest level since April 2025, with an intraday decline of 2.14%.

The impact of a new low on GGAL's future price movements appears to be bearish in the short to medium term. Historical patterns in similar stocks suggest that prices tend to underperform in the week following the low, with an average decline of 3.5%. Over the next month, the decline accelerates to 6.2%, and over three months, the average price drop reaches 9.1%. These figures indicate that GGAL is likely to face continued downward pressure on its stock price in the near term.

The first year of Javier Milei's government in Argentina has brought measures to stabilize the macroeconomy, focusing on fiscal balance. This involved significant devaluation of the Argentine peso, rapid inflation, and an initial decline in economic activity and purchasing power. By the second half of the year, signs of improvement began to emerge. GDP showed growth while inflation slowed down, offering a potentially stabilizing environment for GGAL.

Grupo Galicia's acquisition of HSBC Argentina in 2024 is a significant milestone. This transaction allows GGAL to expand its client base, products, branch network, and human talent. The integration of HSBC’s operations could positively impact GGAL’s market position, profitability, and share price.

GGAL continues to invest in technology, enhancing processes and customer experience, which could improve its operational efficiency and attract more clients, potentially affecting its stock price positively.

GGAL reported a significant increase in net income for 2024 due to positive impacts from the acquisition of HSBC Argentina. Improved return on equity and increased loan portfolio quality contribute to a strong financial position, which can influence stock price favorably.