Three years ago, the Menem government followed in the footsteps of neighboring Chile, setting up a regulatory framework that gave Argentines the choice of participating in privately managed pension funds instead of the troubled government system. That alone is significant enough to be bullish on this market. Analysts cite the pension-fund inflows as a big reason why the Merval bucked this spring's U.S. market slump triggered by a rise in U.S. rates. That money is chasing a handful of shares. These four are among the 20 Argentine companies that have American depositary receipt, or ADR, programs.
American investors can buy ADRs in the U.S. the same way they buy regular shares.
Poll Watching Analysts say the four are currently close to full value, but recommend buying if the market drops later this year. That could be the case with congressional elections coming up in October. The jockeying is already fierce to succeed Mr. Menem, who completes his second term in 1999. It could also be the case if there's an unexpectedly large increase in U.S. rates. The Bolsa has been trying to lure private companies to list.