Merval, the benchmark index of the Buenos Aires Stock Exchange, rose 1.23% to 33,939.67 points Tuesday, again scratching 34,000-points barrier while the market discounted a reduction in the interest rate in Tuesday’s decision by the Argentinean central bank.
“The trading volume expanded to $ 1.2 billion, of which $ 154 million corresponded to Holcim which included a couple of important blocks,” said analysts at Bull Market Brokers.
After the closing of the market, the central bank of Argentina cut the country’s interest rate from 28% to 27.25% per year, as widely expected by analysts.
The shares of Costanera (-3.44%), Macro (-2.12%), and Petrobras (-0.60%) fell the most, while Grupo Concesionario del Oeste (+9.39%), Holcim (+8.13%), PGR (+4.33%), and YPF (+3.53%) closed higher.
The locally traded U.S. dollar rose again, by 0.98%, closing at 19.33 Argentinean pesos. The expectation on an interest rate cut by the central bank caused the exchange market operators to begin to demand the greenback from the beginning of the day, said Fernando Izzo, an analyst at ABC Mercado de Cambios.
The material has been provided by InstaForex Company – www.instaforex.com
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