The Buenos Aires stock market started this new month in green after registering succulent gains during October.
Argentine stocks and dollar bonds capped a brilliant October with monthly earnings of up to 33%, trend that seems to be repeated at the beginning of November, with increases in equity of up to 10.5%, both in the local stock market and in the international market. Bonds also start the ninth month of the year on the rise and the country risk is pointing towards 950 basis points after approaching 1,000 units on Thursday.
In the variable income segment, the S&P Merval go up 2.9% in pesos to 1,902,671.86 points after winning almost 9% in October. Thus, the main increases in the local stock market are for Edenor (+10.5%), IRSA (+5.4%), YPF (+4.9%) and Conveyor from Southern Gas (+3.8%). In turn, this trend is replicated in Argentine stocks that operate on Wall Street with increases of up to 8.5% thanks to Edenor, YPF (+4.1%), and Southern Gas Carrier (+4.1%).
“The evolution of Argentine assets in these last 2 months shows us an upward trend that goes beyond the fall of dollars (-10% approx.), but also due to a demand for securities. As has been known for a long time, the dollar link assets are the least sought after, which are followed (although at a distance) by the CER adjustable assets,” they reported from Aurum Valores.
This can be explained because, beyond the fact that inflation persists downward, “the implicit rates showed opportunities above the Lecaps, which in any case had a more than definitive last rally to be the best investment, only below sovereigns“.
Finally, they assured that the Merval stood out for its volatility, with much steeper trends both upward and corrective after exceeding US$1,500 in mid-September.
Bonds and country risk
In the fixed income segment, sovereign bonds they rise up 2.2%hand in hand with Bonar 2041, followed by Bonar 2029, 2030 and the Global 2041, that climb 2.1%, escorted by the Global 2046which climbs 2%.
In that context, the country risk gives up 32 units (-3.3%) to 952 basic pointsaccording to the measurement of JP Morgan and after falling one 23% and play its minor level in five years during October. The sharp decline occurred amid the influx of fresh funds from the millionaire money laundering, Central Bank purchases, the continuity of the fiscal surplus, the slowdown in inflation, and monetary support from international organizations.
Source: Ambito
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