Argentina’s stock market falls due to profit-taking while waiting for advances in agreement with the IMF

February 3, 2022

BUENOS AIRES, Feb 3 (Reuters) – The Argentine stock market operated with selective declines on Thursday due to profit taking, pending progress in the country’s agreement with the International Monetary Fund (IMF) to restructure more than 40,000 million dollars, in the midst of political tensions within the ruling party.

The leader of the government coalition in the Chamber of Deputies, Máximo Kirchner, resigned on Monday from his position as president of the bloc, triggering multiple speculations.

The leading stock index S&P Merval lost 0.39% to 89,306.51 points at 11:05 local time (1405 GMT), after losing 1.92% in the previous session and accumulating a rise of 6.34% in the previous three business sessions.

“After the announcement of the agreement with the IMF and some political missteps that caused a certain amount of uncertainty about the understanding, the expectation is inclined towards the Congress in March in good spirits,” said Javier Rava of Rava Bursátil.

The understanding with the IMF must still be approved by the local Congress and by the “Staff” of the organization.

“The strength of the agreement did not end up eliminating all doubts, although the signs of the event are totally positive, caution before acting is still present because there are still economic unknowns to resolve and an agreement to finalize,” added Rava.

(Reporting by Walter Bianchi; Editing by Hernán Nessi)