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Argentina’s S&P Merval stock index is climbing to its highest level in dollar terms since 2019 ahead of the nation’s presidential primaries in August.
The index, which tracks locally-traded shares of Argentine companies, climbed as much as five percent on June 21, following a holiday weekend in Argentina and after filling began on a key gas pipeline that promises to increase the nation’s gas exports later this year.
Investors are positioning themselves in Argentine stocks ahead of the shift in the nation’s political cycle, said Francisco Choe, portfolio manager at Galicia Asset Managment in Buenos Aires. The index has climbed 43.7 percent in dollars so far this year, to US$853, its highest since Argentin’s last primary elections in 2019.
Investor’s views have changed in recent weeks as cheap valuations push share prices higher with less than tow months before the primary vote, according to Choe. Polls show voters rejecting the left- leaning ruling coalition in favour of a market-friendly candidate in the upcoming vote.
SOURCE: www.batimes.com.ar