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ARGENTINA: Merval Breaks 32,000 Points Barrier For The First Time In History

Merval, the main index of the Buenos Aires Stock Exchange, rose 0.79% to 32,505.59 points Friday, a new settlement record that marked the 13th consecutive session of gains to the Argentinean stock market. Merval had a weekly gain of 7.11%.

Friday’s rise occurred in spite a temporary profit-taking again during the midday, as it did during the last few sessions to then recover and close in positive territory.

Analyst Daniel Mackintosh, from R. Mackintosh brokerage, noted that the trading volume was of nearly 982 million pesos, an unusually high figure for January.

Mackintosh said that the recent rise of the stock market is due to the money of foreign investors that continues to enter the Argentinean market due to the expectation that between February and March the country will be reclassified from “frontier” to “emerging” market.

YPF’s shares fell 1.80%. The Oil Workers Union of the province of Santa Cruz informed that they decided to initiate a measure of force from Friday’s midnight for an indeterminate time.

Meanwhile, the locally traded U.S. dollar closed up 1.46%, at 18.90 Argentinean pesos due to a large seasonal demand. According to Gustavo Quintana, an analyst at PR Corredores, the foreign exchange session was volatile, and the exchange rate reached record highs after overcoming the 19 pesos barrier intraday.

The material has been provided by InstaForex Company – www.instaforex.com