Grupo Financiero (GGAL) Falls on Higher Inflation Expectations

We recently published 10 Stocks Hammered Harder than Wall Street. Grupo Financiero Galicia SA (NASDAQ:GGAL) is one of the worst performers on Tuesday.

Grupo Financiero dropped its share prices by 5.98 percent on Tuesday to close at $32.21 apiece amid analyst expectations that the inflation rate in Argentina accelerated in September.

According to a poll conducted by Reuters, Argentina’s inflation is forecast to have increased from August, albeit the impact of the recent currency volatility was probably limited.

A higher inflation rate typically triggers interest rate hikes, which could further temper growth for the already struggling Argentine economy.

In other developments, Grupo Financiero Galicia SA (NASDAQ:GGAL) announced the appointment of Diego Hernan Rivas as the new chief executive officer (CEO) of its banking subsidiary, Banco de Galicia y Buenos Aires SA.

The leadership update came at a challenging time for Argentina’s economy amid a higher inflation rate, weak currency, and consumer confidence, among others.

Grupo Financiero (GGAL) Falls on Higher Inflation Expectations

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Investors are now closely watching out for how Rivas would help steer the bank’s strategy amid the ongoing crisis.

Banco de Galicia is the Grupo Financiero Galicia SA’s (NASDAQ:GGAL) largest subsidiary, and is currently one of the largest banks operating in Argentina.

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Disclosure: None. This article is originally published at Insider Monkey.