Follow the rally in the Buenos Aires Stock Exchange. In August it accumulates a rise of 45.6%. Bonds and ADRs also had a day with significant increases.
Argentine shares intensified their bullish rally yesterday both on the Buenos Aires Stock Exchange and on Wall Street, while dollar bonds remained in positive territory due to persistent hedging and renewed bets on electoral trade. It happened after the publication by the International Monetary Fund of the Staff Report last Friday and the battery of measures announced on Sunday by the Minister of Economy and candidate for the presidency of Unión por la Patria, Sergio Massa.
In this context, the S&P Merval shot up 5.4%, to 665,523.91 units, after renewing an intraday historical maximum level of 666,557.95 points. Financial stocks rose strongly: Banco Macro jumped 11.3%; Galicia Financial Group, 11%); and Banco Supervielle, 11%.
In this way, the leading panel of the Buenos Aires Stock Exchange accumulates an increase so far in August of 45.6% in pesos. Measured in CCL dollars, the monthly dynamics turned positive (1.9%) despite the escalation of the parallel exchange rates after the STEP and the devaluation. So far this year, the Merval earns 229.3% in pesos and 43.9% in dollars.
On Wall Street, for its part, the ADRs of Argentine companies climbed to more than 9%. Grupo Supervielle led the increases, with 9.2%; followed by Telecom, with 8%, and Grupo Financiero Galicia, with 7.7%.
In an attempt to calm the markets and appease social tensions, the government launched a series of benefits over the weekend to alleviate the effects of a recent devaluation of the peso and rising inflation. “Unfortunately, given the expected inflation, the greatest effect that the measure can have is to match the higher inflation expected, after the untied prices that were registered after the post-PASO devaluation,” said the EcoGo consultancy.
Last week, in a measure that was taken for granted in the market, the Monetary Fund disbursed US$7.5 billion after the approval of the fifth and sixth revision of its program for the debt of US$44 billion that it took Mauricio Macri in 2018, and approved changes in the proposed objectives. “The IMF continues to see risks to the program and they emphasized the execution risks, especially from the political-social aspect,” said the SBS Group.
Bonds and country risk
In the fixed income segment, dollar-denominated bonds closed with the majority of increases, led by Bonar 2029 (6.6%) and Bonar 2041 (4.8%).
Thus, the country risk prepared by the JP Morgan bank fell 25 basis points to 2,041 units, compared to a record high of 2,976 units registered just over a year ago.
Source: Ambito
