Shares of Argentine banker Banco BBVA Argentina S.A. (NYSE: BBAR) have taken a pounding, down more than 72% over the past year. Today, however, the stock went up for a change -- and what a change it was: Banco BBVA Argentina S.A. stock closed up 15.5%.
Why the sudden turnaround in sentiment? As Bloomberg reports today, Argentine president-elect Alberto Fernandez "has a plan to grow the economy and tackle the nation's debt as he seeks to renegotiate a record $56 billion credit line with the lender."
Fernandez is currently in the process of taking over negotiations with the International Monetary Fund to secure that bailout loan. In his phone call with IMF head Kristalina Georgieva, he apparently assured her that Argentina is "taking on a commitment that we can meet."
Granted, that's a statement easier made than fulfilled. But Georgieva appears to be willing to give Fernandez the benefit of the doubt, calling the phone call "constructive" and promising to "work together" to get the deal done, while still insisting that "the government has to figure out a way to live within budgetary constraints."
While I'd hardly say Argentina is out of the woods yet, investors seem to be taking the two leaders' promises to work to find a solution as a promising sign -- and are bidding up Argentine bank stocks like Banco BBVA in response.