Bonds in dollars stopped their bullish rally yesterday and ended with the majority of losses, while country-risk rebounded from two-month lows, due to a foreseeable profit-taking and while the market awaited the result of the mega debt swap in pesos to alleviate short-term maturities (see page 3). For their part, the shares of the Buenos Aires Stock Exchange managed to finish in the green, but the bulk of the ADRs fell.
In the previous day, the sovereign debt in dollars had climbed to almost 8%. However, this Thursday the bonds denominated in foreign currency traded with the majority of losses. Thus, the deepest were for Global 2041 (3%) and Global 2035 (2.8%). The increases, meanwhile, were led by Bonar 2035 (4%), Bonar 2029 (2.4%). The country risk rose 2% and closed at 2,382 basis points.
“After two days of euphoria, dollar bonds took a breather. Foreign currency sovereign debt fell by an average of 35 cents along the curve, with the greatest punishment observed in the 2041/2046 tranche, which lost 45 cents,” reported the SBS Group.
For their part, both dollar-linked and dual sovereigns showed good demand and rose an average of 0.6% along the curve. The TDS23 stood out, climbing 0.9%. Finally, CER bonds rose 0.8% in the short and medium tranches of the curve, while the long tranche fell 0.4%.
In what was the “largest debt swap in Argentinean history”, the Ministry of Economy managed to clear maturities for $7.4 trillion in the remainder of 2023, by achieving 78% acceptance from investors, more than expected by the market.
ADRs and shares
The leading index, the S&P Merval de Bolsa y Mercados Argentinos (BYMA) rose 0.1% to 380,907.48 points. The biggest increases were for Grupo Financiero Galicia (2.4%), YPF (2%) and Edenor (1.5%). The decreases, meanwhile, were led by Transportadora de Gas del Norte (1.9%) and BYMA (1.8%).
On Wall Street, Argentine ADRs mostly closed with a negative trend. The biggest losses were for Banco BBVA (3.7%), Despegar (3%) and Bioceres (2.8%).
Source: Ambito
