What is the MERVAL index?
The MERVAL Index is the most prominent stock market index of the Buenos Aires Stock Exchange – the organisation in charge of maintaining and running Argentina’s stock exchange, which is based in the country’s capital. The index takes its name fromMercado de Valores, the Spanish translation of ‘stock market’.
Where have you heard about the MERVAL index?
If you’ve ever had any dealings with or considered investing in any companies in the Argentinian or South American markets, you will have likely heard about the MERVAL index. The index contains some of the market’s most important papers, running alongside other indexes including Bolsa General and BURCAP.
What you need to know about the MERVAL index.
As a price-weighted index, the MERVAL index is shown as the market value of a portfolio of stocks. These stocks are selected based on their quotation price, market share and number of transactions. The average value of the MERVAL index has fluctuated between 295.39 and 1543.31 from 1996 to 2005, with the index reaching its lowest minimum value of 200.86 following the economic crisis in 2001 before quickly recovering. The companies and prices on the index are updated every three months, and companies that have featured on the index include Telecom Argentina, Aluar and Grupo Finaceiro Galícia.
Find out more about the MERVAL index.
To better understand how the MERVAL index operates, read about stock market indexes.