Persistent Selling Pushes Argentina’s Stocks Toward Yearly Bottom

The Buenos Aires Stock Exchange reported the S&P MERVAL Index closed at 1,977,116 points on June 23, 2025, down 4.21% for the day and nearing its lowest level since April.

This sharp drop unfolded while global peers posted gains, underlining how local economic and technical factors continue to weigh heavily on Argentine equities. Trading opened with the index already under pressure, and sellers quickly overwhelmed buyers.

The MERVAL spent the session below all major moving averages, including the 50-day and 200-day lines, confirming a persistent downtrend. The daily chart shows the index broke decisively beneath the Ichimoku cloud, a sign of strong bearish momentum.

Bollinger Bands widened as the price hugged the lower band, underscoring heightened volatility and absence of support. Momentum indicators confirm the market’s weakness.

The daily Relative Strength Index (RSI) fell to 32.89, approaching oversold territory but not yet signaling a reversal. The Moving Average Convergence Divergence (MACD) histogram deepened in negative territory.

Both the signal and MACD lines sloped downward, indicating increasing selling pressure. The 4-hour chart paints a similar picture: the RSI dropped to 27.94, and the MACD remained negative, suggesting no immediate relief for bulls.

Volume data, while not explicitly detailed, clearly surged as prices fell, confirming that the selloff had conviction. This aligns with the market’s historical pattern, where sharp moves are often accompanied by high turnover, especially in times of uncertainty.

MERVAL Faces Broad Declines Amid Local Uncertainty

Sector performance over the last 24 hours reveals broad-based declines. Healthcare and industrials led the losses, falling 8.1% and 5.96% respectively. Telecom, materials, and consumer staples also posted significant drops.

Among individual stocks, Telecom Argentina and Bolsas y Mercados Argentinos each lost nearly 2%, while Ternium Argentina and Import y Export de la Patagonia followed closely.

On the winning side, only a handful of names posted gains in the past week, with Transportadora de Gas del Sur up 3.4% and Cresud Sociedad Anónima rising 3.2%, both benefiting from defensive positioning and sector-specific catalysts.

Compared to regional peers, the MERVAL’s performance stands out for its volatility and downside. While U.S. and Asian indices rallied on easing geopolitical tensions and lower oil prices, Argentina’s market decoupled, reflecting persistent capital outflows and skepticism over recent macro improvements.

The market’s price-to-earnings ratio, now at 13.7x, has compressed from earlier in the year, mirroring declining confidence. Technical analysis offers little comfort. Support near the April lows is now under threat.

If the index breaks below this level, technical selling could accelerate. The absence of bullish divergences in momentum indicators and the lack of volume spikes on upswings suggest that buyers remain sidelined.

In sum, the MERVAL’s slide reflects a market gripped by local uncertainty and technical fragility, with little evidence of stabilization as June draws to a close.