Share prices for Argentina companies are soaring this year as investors are increasingly optimistic regarding a political power shift and a more pro-business environment following this Sunday’s critical legislative primary elections.
“More Than Half Of The Stocks Traded On The Merval Have Risen At Least 100%” is the headline of Sofia Bustamante’s front page story in today’s Cronista which shows the bullish sentiment strongest in the banking, energy and telecom sectors.
The Merval index companies posting the biggest gains so far in 2013 are Edenor (338%), Grupo Financiero Galicia (136%), Banco Macro (135%), Pampa (135%), Telecom (133%), Banco Frances (124%), YPF (111%) and Siderar (108%).
While the Merval finished the first half of the year just 42 points higher than where it opened on January 2, Argentine shares surged in the third quarter as investor confidence began to build regarding the October elections. The Merval rose 62% in the third quarter and opened the fourth quarter at 4,906.
The Merval has added another 735 points (15%) in October with two categories of investors clearly emerging: those who are taking profits before Sunday’s election and those who are betting that Argentine stock prices will continue rising after the election together with consumer confidence, consumption and corporate earnings. (Full Story in Spanish)
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