The bonds rose in two days to 16% and the S&P Merval accumulated an increase of almost 15% in the last four sessions, due to the repurchases of positions in the midst of a better external climate and after the meeting between Alberto Fernández and his American counterpart Joe Biden, which was read as a sign of support for the country. This happened before the International Monetary Fund (IMF) approves domestic accounts for the fourth quarter of 2022.
In this context, Argentine bonds in dollars closed with a strong upward trend. Thus, those that increased the most were Global 2041 (8%), Global 2029 (3.5%) and Global 2030 (3.4%). Thus, the recovery that began at the beginning of the week is confirmed. It should be noted that the debt market has just collapsed after the government’s decision to order public agencies to hand over their holdings of dollar securities in exchange for other dual bonds payable in pesos.
Thus, so far this month the bonds have registered strong losses although, on this day, only three remain in double digits (Global 2030, Global 2029 and Global 2046). In this way, the country risk measured by JP Morgan fell 2.33% to 2,302 points, against a level above 2,500 units noted on Friday.
“To what do we attribute this pronounced rise? The comprehensive analysis of the situation leaves us with more doubts than certainties. In the first instance, the improvement in the external climate helped notably, especially those bonds whose behavior since their issuance can be explained by 66% of international factors. Now, is what is observed on emerging screens enough to explain this strong resurgence? Without particularly favorable news, it is possible that the market is incorporating some rumors and political news”, said Portfolio Personal Inversiones (PPI).
Referring to the last point, PPI mentioned as important: the possibility of an “export dollar” or “agro dollar”, the lesser political uncertainty after Mauricio Macri’s resignation as candidate and the visit of Sergio Massa to the IMF, which would have presumably been positive.
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The main stock index of the Buenos Aires stock market, the S&P Merval, ended the day with a rise of 1%, to 251,639.07 points, with which it accumulates an improvement of 14.8% in four consecutive business sessions. The rise was once again supported by energy and financial actions due to the behavior of ADRs on Wall Street.
“The recovery of the main Argentine stock index has been as fast as its fall. On three wheels he added 67 points, meaning that he averaged progress of just over 22 points per day. A remarkable number. We will see how it continues in the coming days, but a priori the momentum seems to be running out of gasoline”, considered PPI about what could happen in the short term.
Thus, in the leading panel, the main increases corresponded to Edenor (7%), Banco de valores (4.1%) and YPF (3.2%). Regarding ADRs, Edenor (5.9%), Mercado Libre (3.4%) and Bioceres (2.8%) led.
Source: Ambito
