On Wednesday, February 28th, the S&P Merval index falls for the third consecutive session. This occurs amid tension between the Government of Ja
On Wednesday, February 28th, the S&P Merval index falls for the third consecutive session. This occurs amid tension between the Government of Javier Milei and the province of Chubut over revenue sharing funds.
In this context, the stock index retreats by 0.9%, reaching 1,024,643.260 units. Thus far this week, it has accumulated a decline of 8.2% after falling during the first three sessions of the week. In the local market, stocks are mostly down. The biggest decliners include Grupo Supervielle (-3.2%), Sociedad Comercial del Plata (-2.4%), and Cresud (-1.8%).
On the other hand, Argentine stocks trading on Wall Street are mostly down as well. The ones experiencing the greatest losses are IRSA (-2.1%), Bioceres (-1.7%), and Central Puerto (-1.6%). Meanwhile, the only gainers are Banco Macro (+2.1%), Grupo Financiero Galicia (+1.1%), and Transportadora de Gas del Sur (+0.9%).
Argentina’s assets fall due to heightened selling pressure stemming from a complex political tension amidst verbal clashes between the central government and some provincial governors over fund disbursements from the national treasury.
The situation escalated to the judiciary, as publicly stated by the governors of the Patagonian province of Chubut and the strategic Province of Buenos Aires.
Meanwhile, a federal judge ruled in favor of Chubut and ordered the suspension of the fund cuts, while the government prepares an appeal, local media reports, suggesting that the case may be elevated directly to the Argentine Supreme Court.
The administration of President Javier Milei labeled the threat by the oil-rich province of Chubut to cut off gas and oil supplies starting Wednesday as “extortion” in protest against a reduction in monthly revenue-sharing disbursements. Additionally, following the federal judge’s ruling in Chubut, the National Government announced they would file a per saltum appeal to the Supreme Court.
On the other hand, the western province of La Rioja was unable to recently settle a debt of around $26 million, and the Governor of Buenos Aires – and former Minister of Economy – Axel Kicillof did not rule out a potential issuance of its own currency.
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