argentine Stocks Mixed as Energy Sector Leads July Gains Amidst Election Anticipation
Buenos Aires,Argentina – Argentine equities experienced a mixed performance,with the energy sector emerging as the top performer in July. The S&P Merval index saw a modest gain of 1.4% locally, lagging behind the 2.8% rise in the dollar-linked “contado con liquidación” (CCL) rate. Aluar (+4.3%) spearheaded the day’s advances, followed by Transener (+2.6%) and YPF (+2.4%).On a monthly basis, the S&P Merval accumulated a gain of 17.3% in peso terms, reaching 2,340,313,790 points, and a 4.8% increase when measured in dollars. Isabel Botta, product manager at Balanz, highlighted that the month concluded with a varied outcome for Argentine assets. this performance occurred within a context of consolidating inflation deceleration, which served as a positive signal for investors as they began to adjust their portfolios for the second half of the year, a period expected to be heavily influenced by the upcoming October elections.
Botta further elaborated that local stocks finished the month on a positive note, primarily driven by the Real estate and Utilities sectors. In terms of CCL dollar performance, Transener (+20%) and IRSA (+15%) were the standout performers. Conversely, the Materials and Banking sectors showed little to no movement, trailing behind the broader market. looking ahead, Botta expressed continued confidence in companies with robust balance sheets and attractive valuations, specifically mentioning Pampa Energía, Transener, and Gas Transporter del Norte.
Internationally, major indices in New York traded with mixed results as the market absorbed a series of economic indicators. Thes included central bank decisions, inflation data, and ongoing commercial negotiations ahead of the August 1 deadline set by the United States. The Federal Reserve maintained it’s interest rates on Wednesday, with Chairman Jerome Powell indicating the need for further data before any policy adjustments. Meanwhile, US inflation saw an increase in June, partly attributed to rising import tariffs impacting the cost of certain goods.In the bond market, Argentine sovereign debt experienced a general decline in July.Bonar 2041 saw a loss of 1.1% on the day, followed by global 2046 (-0.9%) and Bonar 2029 (-0.9%). Over the course of July, sovereign bonds predominantly registered falls, with Bonar 2041 down 2.9%,Bonar 2035 (-1.9%), global 2035 (-1.7%), and Global 2041 (-1.7%). The latest country risk data (EMBI,compiled by JP Morgan) as of July 30 indicated a value of 716 basic points,representing a 1.5% decrease from the previous reading.
