Argentine Stocks Gain as Opposition Alliance Seen Boosting MacriCamila Russo
Argentine stocks rose to a four-month high on speculation an agreement between two opposition parties is improving the odds that a more market-friendly candidate will win October’s presidential elections.
The Merval equity gauge rose 4.3 percent to 10,690.91 at 4:49 p.m. in Buenos Aires, the highest level on a closing basis since Nov. 5. Banco Macro SA led gains, surging 8.2 percent.
Stocks rallied on improved prospects for Buenos Aires Mayor Mauricio Macri after his party, known as Pro, formed an alliance with the Radical Civic Union. Investors speculate Macri will make a priority of settling a legal dispute with holdout creditors and removing currency controls, according to Mariano Tavelli, the president of brokerage Tavelli & Cia.
“The market sees Macri as the best-positioned candidate to fix the pending economic issues,” Tavelli said in a phone interview. “This pact was seen positively as it gives him an additional boost because of the radical party’s voter base outside Buenos Aires.”
Macri had 27.2 percent of voter support compared with 21.6 percent for Buenos Aires province Governor Daniel Scioli and 21.4 percent for lawmaker Sergio Massa, according to Feb. 20-28 poll of 3,002 people by Raul G. Aragon & Asoc.
Argentine stocks traded in the U.S. also rallied, with Banco Macro’s American depositary receipts up 7.7 percent and BBVA Banco Frances SA’s ADRs surging 7.3 percent.