Argentine stocks rose by up to 15% on Wall Street after the drop in country risk

Argentinian companies listed on Wall Street experienced a strong bullish day, with increases of up to 14.6%, after the country risk plummeted to the area of 446 basis points, reaching its lowest level since May 2018, in a clear sign of market confidence in the economic direction of the Government of Javier Milei.

The financial rally occurred alongside a significant improvement in sovereign bonds and the decision by S&P Global Ratings to upgrade Argentina's debt rating from CCC+ to B-, with a stable outlook. This measure was interpreted by investors as a support for the process of macroeconomic order, fiscal balance, and reserve rebuilding being carried out by the national administration.

Among the Argentinian stocks listed in New York, BBVA had the best performance, with an increase of 14.6%. Other banking sector stocks also stood out, such as Supervielle, which rose 13%, Banco Macro, with an improvement of 12.3%, and Grupo Financiero Galicia, which climbed 11.8%.

The positive trend also reached companies from various sectors. Telecom rose 13.3%, IRSA advanced 10.9%, Loma Negra gained 10.8%, Cresud climbed 9.8%, and Transportadora Gas del Sur improved by 9%. Additionally, Corporación América recorded an increase of 5.4%, Central Puerto advanced 6.6%, Pampa Energía gained 7.1%, YPF rose 3.9%, Ternium advanced 3.1%, and Tenaris closed with an improvement of 2.1%.

In the local market, the S&P Merval closed with an increase of 5.6% in pesos and 7.9% measured in dollars, consolidating a day of strong recovery for Argentinian assets and reinforcing investor optimism about the economic direction. So far this year, the leading panel has accumulated an improvement of 9.2%.

The national government celebrated the improvement in the credit rating. The Secretary of Finance, Federico Furiase, stated that S&P's decision “opens the doors to a universe of investors to position themselves in Argentinian assets” and emphasized that this could strengthen the flow of capital into the country at lower rates.