MercoPress. South Atlantic News Agency

Trump wave keeps Merval on the fall for a total 9.25% drop in a week

No recovery for Buenos Aires Stock Exchange with Trump presidency coming up

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.

 San Miguel, a producer, industrializer and exporter of citrus fruit, adjusted 12.46% on Friday, adding to an 8.20% loss Thursday and 3.78% Wednesday, becoming one of the most notorious casualties of the new international scenario.

Trump's idea, as voiced during his campaign, is to protect local industries, which casts doubts on the viability of an agreement to export Argentine lemons that had been reached recently. Radio statements by the Argentine Ambassador to Washington DC were of no reassurance.

Petrobras Brazil again lost 6% today with a volume of operations of $ 122 million, having also experienced heavy losses this week on the Bovespa, the Sao Paulo of 3.30% on Friday. Together with Pampa Energía, which lost 2% with a hefty level of business that reached $ 158.5 million, both denominations accounted for 38% of the total volume traded Friday in Buenos Aires.

The US dollar went up 3% to the Argentina peso this week, creating a surplus of foreign currency that resulted in some more trading than anticipated, despite the reigning uncertainty. “There will be a time abyss of high sensitivity until January 20 and a lot of volatility,” trader Leopoldo Olivari Sívori for the firm Bacqué explained.

“This leads us to believe that the next short-term objective could be close to 14,000 points,” he warns, adding that the cut in Argentine ADRs lies in its rationale for forecasting a future that may continue to fall. “There are several papers that are already trading below average in 200 rounds, like Banco Francés, Banco Galicia and YPF, which is a sign for the medium term,” he concluded.

The 200-session moving average is one of the simplest and most reliable indicators for detecting long-term trends. Stock traders add to the doubts the Fed's definition of interest rates next December.