The announcement of the General Framework for Trade and Investment between Argentina and the United States has caused major restructuring in the local market. The framework deal does not yet contain specific details or commitments, but its mere mention has raised hopes in traditionally export-oriented sectors such as agriculture, steel and aluminum.
The move was immediate, with several companies linked to these activities recording significant increases in their stock prices, which helped reverse Merval’s initial performance and compensate for earlier losses.
Companies in the agro-industrial sector were the ones with the most significant increases.
– Citricola San Miguel, which specializes in the export of lemon juice and its derivatives, was the most notable with an increase of 31%.
– Brito Group’s Inversora Juramento rose 20%, driven by diversification in livestock, agriculture and primary production.
– La Anonima, through its controlling company Sociedad Importadora y Exportadora de la Patagonia, which is also the owner of two meat processing plants, rose almost 16%, benefiting from expectations of greater market opening for meat products.
This impact is also felt by food companies such as Morixe (+8.7%) and Molinos Agro (+8.2%), which see opportunities for market expansion and improved export conditions in the possibility of bilateral approaches.
In heavy industry, Ternium rose by 6.9%, while Aluaru, the country’s main aluminum producer, recorded a notable increase of 13.2%. In New York, Elstein Group’s Kressed rose 4.5%, also reflecting the optimism of foreign investors.
Merval reversed its decline and returned to positive territory
The Buenos Aires stock market has had volatile cycles. After starting negative on Wall Street’s decline, the S&P Marval quickly reversed the trend and closed up 3.6% in pesos and 3.8% in dollars.
These improvements helped the index offset Thursday’s decline, when it fell 3.9% after three consecutive days of gains. For carriers, the positive market reaction showed that the announcement triggered concrete expectations for bilateral links.
Bonds and country risk: mixed but stable signals
Argentina’s government bonds remained in negative territory throughout the day in New York, but ended on a mixed note. Meanwhile, country risk fell by 4 basis points to 612 units, a level that the market considers relatively stable within the current financial scheme.
Stable dollar and within exchange rate fluctuation range
The foreign exchange market also showed signs of calm. At Banque Nation, the dollar ended at $1,425.
In the wholesale sector, the currency depreciated slightly to $1,407. MEP fell 0.5% to $1,451 and closed cash at $1,484.
The wholesale price remains 6.4% below the upper end of the exchange rate band of $1,502.5, according to broker PPI. The financial dollar will also continue within the system, albeit with some movement.
Additionally, future dollar contracts maturing through April 2026 will continue to match the plan’s limits, returning some predictability to the plan for analysts.
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