Good and not so good news from Argentina. Merval, the main index of the Buenos Aires Stock Exchange, rose 0.79% to 32,505.59 points on Friday, a new settlement record that marked the 13th consecutive session of gains to the Argentine stock market. Merval had a weekly gain of 7.11%.
However vehicle output fell by 17% in December from the same period of 2016, and dropped 26.4% compared to November 2017, totaling 33,280 units, reported the Argentinean Association of Automotive Manufacturers (Adefa).
Friday's stock market rise occurred in spite a temporary profit-taking again during the midday, as it did during the last few sessions to then recover and close in positive territory.
Analyst Daniel Mackintosh, from R. Mackintosh brokerage, noted that the trading volume was of nearly 982 million pesos, an unusually high figure for January.
Mackintosh said that the recent rise of the stock market is due to the money of foreign investors that continues to enter the Argentine market due to the expectation that between February and March the country will be reclassified from frontier to emerging market.
YPF's shares fell 1.80%. The Oil Workers Union of the province of Santa Cruz informed that they decided to initiate a measure of force from Friday's midnight for an indeterminate time.
As to the Adefa release, the monthly decrease in production reflects the lower number of working days and a holiday break in four industrial plants. According to the association, last December had 14 working days, four days less than in December 2016.
Auto exports in December totaled 18,202 units in December, 4.8% less than in November and 3.2% below the 18,802 vehicles sold abroad in December 2016. During 2017, the auto sector exports totaled 209,587, a 10.3% growth compared to the previous year.
Meanwhile, the locally traded U.S. dollar closed up 1.46%, at 18.90 Argentine pesos due to a large seasonal demand. According to Gustavo Quintana, an analyst at PR Corredores, the foreign exchange session was volatile, and the exchange rate reached record highs after overcoming the 19 pesos barrier intraday.