Argentina Markets: Merval & the Peso — August 22
Key Facts
- The S&P Merval index, a barometer of Argentina’s largest listed companies, closed at 2,913,184 points, a gain of 1.3% on the session.
- The official peso rate, known as the USD/ARS, finished flat at 1,499 per dollar, moving just 0.12% on the day.
- Argentina’s country risk premium, the extra yield investors demand to hold its debt, fell to around 506 basis points, its first drop in 14 sessions.
- Among local shares, energy transporter TGS, trading as TGSU2, declined 0.4% and was the main laggard in the most-traded group.
- Grupo Supervielle, a mid-sized bank, led the day’s gainers, rising 3.2% on the Buenos Aires exchange.
Today’s Focus
Argentina’s main stock index, the S&P Merval, rebounded 1.3% to close at 2,913,184 points on Thursday, August 21.
The gain came as the peso held steady at 1,499 per dollar and the country risk premium declined for the first time in nearly three weeks.
Bank shares led the way, with Grupo Supervielle up 3.2% and Banco Macro up 1.0%, suggesting investors were buying back into the Milei reform trade.
What matters today. The day’s calm reflects a pause in recent volatility, with lower country risk helping Argentine stocks recover.
01 The session in one read
Argentina’s main stock index, the S&P Merval, clambered back on Thursday, rising 1.3% to close at 2,913,184 points. The rebound came after three down days, giving investors a breather from a volatile August.
The peso, by contrast, barely moved. The official dollar rate closed at 1,499 pesos, a crawl of just 0.12% from the previous session. That stability is the product of the central bank’s managed depreciation regime, which lets the currency slide only a tiny fraction each day.
The most-watched indicator of Argentina’s financial stress also improved. The JP Morgan country risk index fell to around 506 basis points, its first decline in 14 sessions. That gave local shares and dollar bonds room to recover.
The combination of a steady peso, a dip in country risk to 506 basis points, and a 1.3% Merval gain points to a market that wanted a reason to stop selling. But the move is modest: the index remains below the 3-million-point psychological level that has acted as a ceiling for weeks. The key variable to watch is whether the country risk premium can keep falling, or whether this is a one-day pause before more political noise.
02 The day’s numbers
| Measure | Level | Change | Read |
|---|---|---|---|
| S&P Merval | 2,913,184 | +1.3% | Rebound after three down days |
| USD/ARS (official) | 1,499 | +0.12% | Stable, managed crawl |
| Country risk (JP Morgan) | ~506 basis points | −5% | First drop in 14 sessions |
| 52-week position | — | — | Up ~30.5% year-on-year |
| Key technical level | 3,000,000 points | — | Psychological ceiling above current close |
The table shows a market taking a moment to exhale. The Merval’s 1.3% rise is modest but broadly based, and it leaves the index just below the 3-million-point mark.
That 3-million level has acted as a magnet and a ceiling in recent sessions. Holding above it, or failing to, will be the next test of whether this bounce has legs. Rio Times · Live Market Intelligence
Live Market IntelligenceArgentina — Live Market Board
Argentina — Live Market Board
Instrument Last Change YoY Prev. High Low Volume
MERVAL
2,913,184
+1.30%
+30.51%
3,022,485
3,042,365
2,991,150
—
USD/ARS
1,493
+0.10%
+12.96%
1,491
1,494
1,480
—
YPF
7,810
+0.26%
+72.84%
7,790
7,850
7,600
1,763,858
GGAL
6,980
-0.78%
+1.82%
7,035
7,115
6,920
1,564,062
PAMPA
5,115
+0.69%
+26.70%
5,080
5,140
5,000
721,190
TXAR
747.50
-2.35%
+18.67%
765.50
770.00
742.50
771,892
ALUAR
938.00
-1.21%
+29.83%
949.50
951.00
932.50
135,426
TGS
8,870
-0.17%
+15.05%
8,885
9,075
8,720
143,546
CEPU
2,156
+1.84%
+28.36%
2,117
2,165
2,086
404,146
MIRGOR
1,650
-1.20%
-92.90%
1,670
1,670
1,635
20,877
COME
40.93
-0.73%
-30.47%
41.23
41.60
40.50
4,258,884
LOMA NEGRA
3,130
+0.08%
+5.80%
3,128
3,205
3,090
182,992
BYMA
275.00
-1.70%
+35.14%
279.75
282.50
272.00
1,409,575
TELECOM ARG
4,233
-0.70%
+55.19%
4,263
4,335
4,160
31,896
GLOBANT
38.10
-2.26%
-49.65%
38.98
38.70
36.77
793,552
MERCADOLIBRE
1,870
-3.59%
-20.71%
1,940
1,927
1,870
329,640
03 Why it moved — country risk eases after weeks of pressure
The clearest driver was the decline in country risk. The JP Morgan Emerging Markets Bond Index (EMBI) for Argentina, which measures the premium investors demand to hold Argentine debt over US Treasuries, fell from 532 to 505 basis points. That is a shift of around 5% in a single day.
Local media reported the drop alongside signs of improving activity and exports. The consumer slowdown also showed signs of decelerating in July, with smaller falls in supermarket and wholesale sales than earlier in the year.
The lower risk premium matters because it feeds directly into the cost of capital for Argentine companies. When country risk falls, banks and energy firms typically lead the stock market higher, which is exactly what happened on Thursday.
04 The day’s movers
| Driver | Level / Move | Change | Note |
|---|---|---|---|
| Grupo Supervielle (SUPV) | $3m traded | +3.2% | Led domestic gainers |
| Grupo Galicia (GGAL) | $25m traded | +1.6% | Most-traded bank name |
| YPF (YPFD) | $8m traded | +1.3% | State-controlled energy firm |
| Banco Macro (BMA) | $3m traded | +1.0% | Part of bank recovery |
| Pampa Energía (PAMP) | $4m traded | +0.5% | Energy utility edged higher |
| TGS (TGSU2) | $1m traded | −0.4% | Only loser in most-traded group |
Grupo Supervielle was the standout, gaining 3.2% as investors returned to mid-sized banks. Grupo Galicia, the most-traded name with $25 million in turnover, rose 1.6%.
The table also shows breadth: YPF, the state-controlled oil and gas company, rose 1.3%, while utilities Pampa Energía and Central Puerto posted smaller gains. The only notable local loser was gas transporter TGS, down 0.4%.
05 The regional scoreboard
| Index | Country | Change |
|---|---|---|
| S&P Merval | Argentina | +1.3% |
| Ibovespa | Brazil | +1.85% |
| IPC | Mexico | +1.36% |
| IPSA | Chile | +0.89% |
| COLCAP | Colombia | +0.61% |
Argentina’s gain was part of a broader Latin American upswing. Brazil’s Ibovespa rose 1.85%, Mexico’s IPC added 1.36%, and Chile’s IPSA gained 0.89%.
The regional rally was helped by a weaker US dollar and falling volatility, which supported emerging-market assets across the board.
06 The technical picture
The Merval closed at 2,913,184 points, still below the 3-million threshold that has defined the index’s recent range. The index is up around 30.5% year-on-year, a sign of the powerful rally in Argentine assets since president Javier Milei took office.
The next test is clear: a close above 3,000,000 would restore the bullish narrative, while a failure to reclaim that level could leave the index vulnerable to another leg lower. Watch the 3-million mark and the country risk spread over the coming sessions.
07 What to watch
- Country risk: Whether the JP Morgan spread holds below 506 basis points or resumes its climb.
- The 3-million level: A close above 3,000,000 on the Merval would signal renewed bullish momentum.
- Peso stability: Any shift in the central bank’s managed crawl, known as the micro-devaluations, would alter the FX outlook.
- Political noise: Opposition pressure and social unrest could reignite volatility in the reform trade.
Background: Argentina Public Works Funds: US$3 Billion Held Back.
Background: Milei Economic Model Shows Signs of Strain in Argentina.
Frequently Asked Questions
What is the S&P Merval?
It is Argentina’s main stock index, tracking the largest companies on the Buenos Aires exchange in Argentine pesos.
Why did Argentine stocks rise on August 21?
The Merval gained 1.3% as country risk fell for the first time in 14 sessions and the peso held steady at 1,499 per dollar.
What is country risk?
It is the extra yield, measured in basis points, that investors demand to hold Argentine debt instead of safer US Treasuries. A fall signals improving confidence.
Why does the peso move so little?
Argentina’s central bank manages the exchange rate through a slow, controlled crawl, letting the peso depreciate only tiny fractions each day.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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