MercoPress. South Atlantic News Agency
Despite all the negative economic data, Argentina's stock market has almost doubled 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. Read full article
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Disclaimer & comment rulesCould it be that all the domestic restrictions have meant there are few places that Argentines can actually “store” their savings? Shares in a business are probably better protection than a savings account with 5% interest in a 40% inflation economy.
Sep 11th, 2014 - 08:55 am - Link - Report abuse 0We know Argentina is a basket case economy so there must be another explanation for this huge rise.
Perhaps this is due to the 'real' value of the peso being considerably lower than the 'official' value?
Sep 11th, 2014 - 09:07 am - Link - Report abuse 0Sounds like speculators and hoarders to me. :-)
Sep 11th, 2014 - 09:32 am - Link - Report abuse 0@3
Sep 11th, 2014 - 10:35 am - Link - Report abuse 0I only know Western speculators. They are Mercosul investors who know our markets and opportunities.
https://www.youtube.com/watch?v=2CYVw4dne-0&list=TLg-LbFsxKF8ajoMfsmYQlB9t9fv7UJEV6
Still not much use if you have to pay blue rate to get your money out of the country.
Sep 11th, 2014 - 10:43 am - Link - Report abuse 0I think a number of these investors (eg George Soros taking a 3.5% stake in YPF) are taking the long view and are hoping Argentina elects somebody sane to the Presidency next year.
Sep 11th, 2014 - 11:08 am - Link - Report abuse 0It should also be remembered that the Merval is, in terms of total market capitalisation, very “small beer” as the FT Lex columnists were discussing three weeks ago
https://www.youtube.com/watch?v=3QwJIPGunW4&list=UUoUxsWakJucWg46KW5RsvPw
Is anyone surprised?
Sep 11th, 2014 - 11:56 am - Link - Report abuse 0No, I thought not.
Maybe it's up, but it is a back water match stick poker game in an alley in Las Vegas.
Sep 11th, 2014 - 12:04 pm - Link - Report abuse 0I'm with those that say it is because the locals feel it is safer than the bank. Or prefer the risk. Madness ensues when people lose faith in the banks.
Sep 11th, 2014 - 01:12 pm - Link - Report abuse 0buy now and be bankrupt long term like zee german holdout. Brazil got downgraded this week. None of these countries are going to dig up Pinochet to police property. You're supposed to buy when there's blood in the streets...not months before.
Sep 11th, 2014 - 01:15 pm - Link - Report abuse 0“People think there's a light at the end of the tunnel” - that's because there's a train coming!!!
Sep 11th, 2014 - 02:24 pm - Link - Report abuse 0The market is a reflection of real value vs. an uncertain Argentine monetary one.
Sep 11th, 2014 - 03:49 pm - Link - Report abuse 0During the last collapse I remember Argentines buying new cars as a way of hedging against the Peso devaluation. Stocks work just as well, including a fairly free movement of assets.
http://www.infobae.com/2014/09/10/1593988-se-deteriora-el-patrimonio-del-bcra-la-deuda-emitida-la-entidad-ya-supera-las-reservas yes, but the paper should mention more the MEP and contado con liqui effect
Sep 11th, 2014 - 04:47 pm - Link - Report abuse 0If BCRA really had U$28B it wouldn't be begging for a U$800M YUAN high interest loan.
Sep 11th, 2014 - 09:50 pm - Link - Report abuse 0Methinks their float is running out.
I don't think O/G companies take IOUs
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