MerVal according to Wikipedia is the most important index of the Buenos Aires Stock exchange, Argentina. It is a price-weighted index, calculated as the market value of a portfolio of stocks selected based on their market share, number of transactions and quotation price. It fell more than 10% yesterday. Probably one of the largest fall it has seen in recent times.
Argentina is the third largest economy in South America and has one of the highest GDP per capita income in the region. But the stock markets went for a toss a potential reason being a Debt default yet to occur. Argentina was looking to restructure its debt and hence avoid paying the amount to Hedge fund creditors. The US Supreme court rejected their appeal and hence the stock markets plummeted almost 10% in a day.
By: Sumeet Jain, CMT
Equity Research Desk
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