MercoPress. South Atlantic News Agency

Argentine stock market booming with new highs for seventh day running

Financial, energy and companies related to construction and public works stood led the push while turnover reached some 2.245 million pesos, highest since last June

The Argentine stock market is booming and on Thursday confirmed its seventh day running increase as investors are flocking encouraged by an imminent accord between the president Mauricio Macri administration and the IMF for a new loan package including reforms and a balanced budget in the next 18/24 months.

The Merval index was up 4.2%, reaching 34.514,24 points, back to the maximum levels of last February and in the last seven rounds has accumulated earnings of 18.4%.

Financial, energy and companies related to construction and public works stood led the push while the turnover reached some 2.245 million pesos, the highest since last June, and which is 42% higher than on Wednesday.

The optimism turned into a strong bull market is attributed to the political understanding to approve the 2019 budget and the agreement between Argentina and the IMF regarding the standby loan which allegedly could be increased some US$ 15/20bn from the original US$ 50bn. Likewise internationally an improved outlook for the emerging economies, both in assets and monetary terms.

“There's a change of attitude regarding emerging markets in the short term, and there is an inflow of funds which are benefitting Argentina. The increase is more evident in stocks because they had collapsed strongly”, according to a Buenos Aires investing firm.

Likewise Argentina's country risk according to the JP Morgan index was down 3,4% to 601 points, its lowest level in the last month and a half.