Argentina's Markets Are Plummeting

henryb

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After the resignation of Central Bank president Juan Carlos Fábrega, MERVAL - the index of Buenos Aires Exchange - has dropped for about 17% it two days. Cristina recently blamed Fábrega for rising inflation and capital flight.

Apparently, such a strong market reaction happened in anticipation of the end of "contado con liqui" and with expectations of even further tightening of currency controls.

Could somebody who is into the markets comment on this situation?
 

Rich One

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WSJ reports that even with this 8 % drop Argie Stocks had the best performance of any stock In The World.... 68 % in Dollars ... YESSS

http://www.infobae.c...table-del-mundo

Even with the 8% drop registered by the Buenos Aires Stock Exchange yesterday,( because the resignation of the central bank president, Juan Carlos Fabrega), places the Argie Stock index on the podium with the world's highest performances.

These news is collected frpm the prestigious American newspaper The Wall Street Journal, where it is further emphasized that beyond "the deep depreciation of the peso t his year, Argentine stocks recorded a rise of 68% in dollars." :cool:
 

Alicia karr

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And if they do away with the "contando con liqui " rate, as some fear may now happen, would that statistic still be valid?
And what would the brokerage houses use instead?....
 

camberiu

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WSJ reports that even with this 8 % drop Argie Stocks had the best performance of any stock In The World.... 68 % in Dollars ... YESSS
The stock market did so well because people wanted to dump their pesos. Venezuela went through the same thing. It has nothing to do with fundamentals. But even that strategy reaches a limit, which I think we have just reached it.
 

Alicia karr

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That's what I was thinking, camberiu... And what happens if they lower or eliminate the CCL rate? I would ask "can they?"but I think I know the answer to that!
 

Rich One

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And if they do away with the "contando con liqui " rate, as some fear may now happen, would that statistic still be valid?
And what would the brokerage houses use instead?....
Well if you read the WSJ article the boom is not only caused by Argies Trying to use the CCL to fly dollars out of the country bust also by US investors and Hedge Funds that believe stocks had reached their rock bottom floor price.

Quote from Infobae Google Translation

For the WSJ, large investors such as George Soros and Daniel Loeb "are betting that Argentina has bottomed out" and "a possible shift with the presidential elections of October 2015, Cristina Kirchner can not be a candidate ." "The candidates have pledged to work to get out of the hole and fix the economy" notes the WSJ.
 

glasgowjohn

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WSJ reports that even with this 8 % drop Argie Stocks had the best performance of any stock In The World.... 68 % in Dollars ... YESSS

http://www.infobae.c...table-del-mundo

Even with the 8% drop registered by the Buenos Aires Stock Exchange yesterday,( because the resignation of the central bank president, Juan Carlos Fabrega), places the Argie Stock index on the podium with the world's highest performances.

These news is collected frpm the prestigious American newspaper The Wall Street Journal, where it is further emphasized that beyond "the deep depreciation of the peso t his year, Argentine stocks recorded a rise of 68% in dollars." :cool:
Dollars at what exchange rate?
 

Rich One

Registered
Dollars at what exchange rate?
Good question ?? dollars are dollars :D

Check the YPF stock value in wall street in dollars, in the last months, read at the bottom of the page Yield 1-Year 70,76%


http://es.investing.com/equities/ypf-sociedad?cid=29590
 
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