Investing in Argentina

Argentina is a South American country that is one of the G-20 economies. It is the third largest economy in Latin America and has the highest GDP per capita in its region. It possesses plenty of natural resources, a strong agricultural sector, and a well-educated population.

Argentina’s Main Industries

Argentina is economically known for its strength in:

• Agriculture
  • Beef
  • Fruits and Vegetables
  • Wheat
  • Cattle
  • Natural Resources
    • Mining
      • Coal
• Metals
  • Gold
  • Copper
  • Zinc
  • Magnesium
  • Uranium Silver
• Energy
  • Oil and Petroleum
  • Natural Gas
  • Electricity
  • Manufacturing
    • Food Processing
    • Chemicals and Pharmaceuticals
    • Auto Parts, Iron, and Steel
    • Industrial Machinery
    • Textiles
    • Forestry Products
    • Cement
    • Tobacco

Argentina’s Main Stock Exchanges

The two main stock exchanges in Argentina by size are:

1. 1. Buenos Aires Stock Exchange
   1. Argentina’s largest and primary stock exchange
   2. Operates as a self-regulating, non-profit entity
   3. Main Index

i. MERVAL – an important price-weighted index of the exchange

Ways to Invest in Argentina

There are a couple of different ways to invest in Argentine companies:

• Through regional Argentine banks and financial firms or international ones operating in Argentina
  • Santander Rio
  • BBVA Banco Frances
  • BNP Paribas
  • BACS BANCO DE CREDITO Y SECURITIZACION
  • Argentina ETFs
    • ARGT: NYSEArca
    • EEV – emerging market ETF with exposure to various countries including Argentina
    • Through some international online brokers:
      • MB Trading
      • Interactive Brokers
      • TD Ameritrade
      • E-Trade
      • Questrade
      • optionsXpress
      • optionshouse
      • tradeMONSTER
      • Charles Schwab
        

Glimpse into Argentina’s Equity Market

Considered an emerging economy, Argentina attracts significant foreign investors and capital.

The MERVAL (stock index) reached an all-time historical high in January 2011. Although the index deteriorated significantly following the 2008 financial crisis, it has since risen by over 90% from its bottom.

Market capitalization of listed equities rose from $49 billion in 2009 to $64 billion in 2010 – an increase of 31%.

Capital and financing inflows via international markets related to bond issuance and new equity placements had fallen from 2.5% to 0.5% of GDP during the 2008-2009 periods. However, there have been some notable IPOs in 2010/11, which indicates a positive outlook.

Stock Index Performance: MERVAL

Argentina’s 10 Most Profitable Companies in 2010