The Merval benchmark stock index today rose 0.2 percent. Most of the local shares were severely hit yesterday after the surprising news that Legal and Technical Secretary Carlos Zannini would be Daniel Scioli’s running mate in this year’s elections.
Strocks plunged 6 percent, although the Merval index only fell 1.7 percent to 11,151.46 points, as Petrobras shares were unaffected by the political developments and gained 1.4 percent.
According to traders, the announcement “generated mistrust among investors who are expecting changes in the economy after this Kirchnerite administration ends.” “With someone so close to the president, Scioli’s image is seen as a continuity of the current economic scheme,” they told ambito.com.
“It’s bad news in the short term, but sooner or later, the designation of the presidential secretary will make Scioli lose votes, or he will put a limit on him,” another broker said.
Source: Buenos Aires Herald