In 2023, betting on the traditional fixed expiration was a bad deal. Those who opted for this investment saw their pesos grow by 150% amid inflation estimated at 205% for the entire year.. Even though UVA’s fixed maturity allowed us to save money, those who bet on bonds and stocks got a better deal.
While the increase in inflation was around 200%, the official dollar increased by 356%, the peso devalued by 78% over the year and alternative dollars increased between 180% and 196% .
In the local market there are stocks that have risen by more than 600% in pesos. Indeed The Merval index of the Buenos Aires Stock Exchange closed with a rise of 356% in local currency and 62% in dollars.
“From a local point of view the year was characterized by considerable volatility. The presidential elections were a key factor throughout the year,” explains Maximiliano Donzelli of Invertironline (IOL).
“The vast majority of Argentine company shares available on the capital market far outperformed the fixed maturity, which, in 2023, offered a 150% return in Argentine pesos.”
Those who obtained the greatest profits were the investors who bet on Cedears, the certificates that allow you to invest in local market pesos in companies listed on Wall Street. According to IOL data, The highest performance was achieved by software company Nvidia, with a jump of 789% in pesos, followed by META with 700%, Uber with 571% and Spotify with 558%.
“Milei’s arrival brought with it a series of measures aimed at deregulating the economy, opening the country to international markets and reducing state intervention, with the ultimate goal of eliminating the fiscal deficit. These actions were positively received by the market, which had an extraordinary performance in pesos throughout the year, significantly outperforming even the Nasdaq and S&P in one of its most important years,” Donzelli said.
Among the Argentine stocks, the most important on the Buenos Aires Stock Exchange was Transener with an increase of 601% in pesos, followed by Edenor with 590%, YPF with 424% and Supervielle with 410%.
Edenor, Supervielle and YPF are also listed in New York and have offered ADRs on that market dollar returns of 141%, 81% and 88% respectively.
As for Argentine peso bonds, the biggest gains of the year came from the inflation-adjusted Boncer with a rise of 708%, TV24 with 376%, followed by TX28 with 363% and AL30 with the 350%.
“Country risk has also been in the spotlight, increasing by more than 500 points year-to-date to its peak in October. However, following the elections and the implementation of new measures by Milei’s government, country risk country ends the year 350 points below its starting level.”
Source: Clarin
