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%.
Merval, the benchmark stock market index in Argentina, ended Thursday's last trading session of 2017 above the 30,000-point barrier for the first time in history. The index rose 2.84% to 30,024.24 after the local government increased the inflation target for the next couple of years, but reinforced its commitment to lower fiscal deficits in the future.
Merval, the benchmark stock market index in Argentina, rose 0.25% to 29,260.33 on Wednesday, reflecting investor optimism that the Senate would pass the 2018 budget and a tax reform. It was the seventh consecutive increase of the index.
Merval, the main index of the Buenos Aires Stock Exchange, rose 1.51% Thursday, closing at 28,494.01 points - close to exceeding the maximum of the year, by 28,500 points. The Argentine stocks were driven by the approval of the pension and tax reforms passed this week in the House of Representatives.
The index of the leading shares of the Buenos Aires stock market returned to adjust results in 3.51% and accumulated thus four rounds of losses for a total drop of 9,25% sice Monday. The Merval started the week with 17,257.56 points and dropped Friday to 15,659.74 points, with significant decreases except for Tenaris, which managed to stay away from the trend of US-based businesses thanks to a positive balancesheet produced last week.
Argentine stocks closed down 6.85% Wednesday, weighted down by falling oil prices for a second day of heavy losses. As oil prices sank to new five-year lows, the Merval stock index in Buenos Aires shed more than 600 points to 8,279.04, after losing 7.22% Tuesday.
The day after Argentina's central bank governor Juan Carlos Fabrega stepped down, investors expressed their pessimism as Buenos Aires City stock market, Merval, which plunged 7.2% to 10,703.32 points on Thursday.
Buenos Aires shares plunged on Wednesday 8.2% to 11.516,28 units following the news that the Central Bank chief Juan Carlos Fabrega had resigned. The Merval benchmark stock index has risen 132% so far this year.
Despite all the negative news on government restrictions imposed on the Argentine economy and the shortage of hard currency, the country's Merval Index has skyrocketed almost 100% this year, the highest of any stock market in the world. It includes many of the largest companies in the country such as Telecom Argentina and Energy Petrobras, along with banks and a steel maker.
While Argentine Cabinet Chief Jorge Capitanich claimed the country was suffering “speculative attacks to systematically erode the government’s credibility and trust” the US dollar in the Buenos Aires informal market continued to climb and ended Wednesday trading 25 cents higher at 14.45 Pesos.