He S&P Merval did not stop its bullish rally and this Friday reached a new high since 2018measured in dollars. In parallel, the Argentine stocks continued their upward march in New York, while the country risk fell again and hit a new low in almost three months.
The local market moved upwards again due to the buying role of institutional investors, hopeful that the money laundering could help the general revival of the economy. The Government hopes that the arrival of fresh dollars will allow it to pull the country out of recession.
Bank deposits in dollars grew by almost US$1.7 billion since the money laundering was implemented weeks ago, with which it is expected to exceed the US$20 billionaccording to private analysts.
In this context, The S&P Merval index rose 1.7% in pesos and 2.1% in dollars to reach 1,455 pointsa level not seen in six years. The biggest gains among the leading stocks were for Edenor (+6.2%), Galicia Financial Group (+3.5%) and BBVA (+3.1%). In the weekly cumulative, the benchmark showed an improvement of more than 5% evaluated in both local and foreign currencies.
Likewise, on Wall Street, Argentine stocks (ADRs) also registered the majority of increases, led by the same three firms mentioned above.
The government is seeking to negotiate a loan with the International Monetary Fund (IMF) of at least US$10 billion to lift the restrictions. IMF Director for the Western Hemisphere, Rodrigo Valdes, The agency, which six years ago granted the country the largest loan in its history, said Thursday that it delegated all negotiations with Argentina to other officials. US$44 billion.
“In any case, it takes away an argument from the Government that emphasized the unconstructive role of Valdés, and forces it to face future negotiations with less capacity for confrontation,” analyzed Aurum Valores and added: “Such a policy move would allow the IMF to feel more free to deepen its critique of exchange rate policy that was already implicit in the staff’s latest report. Even more so when, as it seems, everything points to the fact that the goal of net reserve accumulation will not be reached by the end of September.”
Another market condition is the political aspect, since Milei suffered a new setback in Congress in the early hours of the morning, where The majority opposition rejected a decree of necessity and urgency (DNU) that increased the expenses reserved for the intelligence service. This is the first time in Argentine history that the Senate and the Chamber of Deputies have repealed the same DNU.
Bonds and country risk
In the local market, sovereign debt in dollars rose up to 3.6% thanks to the Global 2029. It was followed by the Global 2046 (+3%), and the Global 2041 (+2.7%).
He country risk which measures JP Morgan, meanwhile, continued to fall, this time to 1,400 basis points, the lowest level since mid-June.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
