Argentine stocks rise up to 5% on Wall Street and the country risk touches 420 points

The Argentine stock market saw a notable rise on Tuesday as shares traded in New York surged, driven by positive earnings reports and higher oil prices. The country's risk premium increased slightly, reaching 420 points, according to financial data. Shares of Argentine companies listed on the New York Stock Exchange (ADR) rose in tandem with major U.S. indices. This upward trend was particularly evident in the energy sector, with Edenor leading the gains at 5.7%, followed by Cresud at 5.3%, Pampa Energía at 4.5%, and Transportadora Gas del Sur at 4.2%. In contrast, shares of Mercado Libre and Globant declined by 0.9%. In Buenos Aires, the Merval index climbed 2.2% to 3,292,985 units, equivalent to approximately US$2,102.55 after adjusting for the official exchange rate. Notable performers included Metrogas up 5.4%, Edenor up 5.2%, and Pampa Energía up 4.4%. Fernando Marull, a partner at FMyA, attributed the strong performance of Argentine stocks to a globally favorable environment. Although tensions persist due to conflicts in the Middle East, the publication of positive earnings reports from major semiconductor firms has boosted investor sentiment. Additionally, the rise in Brent crude oil prices above $90 per barrel has benefited Argentine energy companies. Gustavo Ber, an economist at Estudio Ber, noted that the optimism generated by the earnings season, centered around technology giants, has renewed appetite in Wall Street. He suggested that external optimism is driving local stocks, making it the primary short-term driver over political and economic signals. Meanwhile, the risk premium added four points, reaching 420 points, according to Rava’s screens. This marks an increase of 1% from the previous day. It surpasses the lowest level recorded during Javier Milei’s administration, which reached 402 points on July 10. This movement is linked to changes in sovereign bond yields. National law bonds fell up to 0.5% (AL41D), although the AL30D rose 0.3%. Global bonds also retreated up to 0.3% (GD46D). On the currency front, the official dollar rate dipped by $3.58 (0.2%) to $1,477.67. It remained 19% below the daily band ceiling set at $1,832.54. The retail dollar rate stayed stable for the second consecutive session at $1,500 at Banco Nación. The average price in the market was $1,498.431, according to the Banco Central’s survey of financial institutions. Financial dollars showed slight declines: the MEP appeared at $1,508.09, down $4.26 from its opening value (-0.3%). The contado con liquidación (CCL) dropped $6.88 to $1,565.88 (-0.4%). In the city of Buenos Aires, the blue dollar was quoted at $1,545 for sale, up $5 from the previous close (+0.3%). This represents the highest level of the year since late October of last year.