Argentine ADRs Surge Up to 10% in Session of 2025

Argentine stocks rallied sharply in the first trading session of 2025 following a wave of profit-taking at the end of 2024.

On Wall Street, Argentine ADRs climbed as much as 10%, while the S&P Merval index in dollars surged over 6%, nearing an all-time high.

Investors are focusing on the consolidation of an orthodox economic program led by President Javier Milei. Encouraging signs such as fiscal balance, declining inflation, and the anticipation of an agreement with the International Monetary Fund (IMF) that could unlock new funding have bolstered market confidence.

Notable gainers among Argentine ADRs include BBVA (+11.2%), Transportadora de Gas del Sur (+11.1%), and Bioceres (+10.9%). The optimism extends beyond fiscal and monetary improvements, with hopes pinned on securing IMF funds to lift currency controls, sustain disinflation efforts, and attract private investment, all aiming to drive a robust economic recovery.

Argentinian Bonds and Currency

Dollar-denominated bonds also saw gains, with the Bonar 2029 up 1.3%, the Bonar 2030 rising 0.9%, and the Global 2041 adding 0.9%.

In this context, Argentina’s country risk, measured by J.P. Morgan, remained steady at 635 basis points.

The Central Bank of Argentina (BCRA) has outlined plans for 2025 to achieve a more flexible exchange rate regime, fostering currency competition while implementing a moderated monthly depreciation aligned with reduced inflation levels. In December, the BCRA purchased $904 million from the market, further strengthening its reserves.

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.