In tune with the rise in Brazilian stocks, Argentine corporate papers moved in firm bullish territory, with gains led by Central Port (+10.5%); Edenor (+9.4%); IRSA (+6%); Macro Bank (+5.9%); and Grupo Financiero Galicia (+5.1%).
Pressured by the sharp decline of almost 3% of the CCL dollar, the leading S&P Merval index of Argentine Stock Exchanges and Markets (BYMA) rose only 0.5%, to 90,440.55, after an improvement of 0.7% in the previous round.
On the main stock panel, the biggest gain was for shares of Central Puerto (+5.1%) and the most pronounced decrease was for Cablevisión (-2.9%). The volume traded in shares was 1,395.1 million pesos (12.4 million dollars).
There is an expectation in the market that the negotiations between the Government and the IMF are nearing their end. The two sides have been in winding talks for more than a year to renegotiate a failed deal struck in 2018 by former President Mauricio Macri.
The Government must still send the draft understanding to Congress for local approvalshortly after a due date with the IMF for some 2,900 million dollars.
President Alberto Fernández said in a forum of the International Labor Organization (ILO) that Argentina “is in the process of negotiating its external debt and seeking balance redirected towards the spirit of the new normality.”
“There is no doubt that when the global scenario clears, we will return to our own agenda. That is, the agreement with the International Monetary Fund (IMF) and if we will finally see a sustainable path in the Argentine economy”said Ariel Manito of Portfolio Personal Investments.
He added that “Meanwhile, all this conflict in Russia could favor flows from countries like Brazil, since the big funds look favorably on Latin America, a region that is on the fringes of the armed conflicts that usually occur in other places.”
This Tuesday, the ETF of Brazil (EWZ) gained 1.6%, while the Bovespa rose 1%. It happened despite the widespread falls on Wall Street (down to 1.4%) due to the geopolitical tension that represents the confrontation between Russia and Ukraine, with Europe and the United States in a first level of follow-up.
In the fixed income segment, dollar bonds closed with most losses, while country risk rebounded 1.5% to 1,734 basis points.
The increases in government bonds in hard currency were led by Global 2029 (+1.7%), while losses were led by Bonar 2035 (-2.5%).
Among the bonds in pesos, on the other hand, those who adjust for CER (inflation) climbed to 1%, highlighting the progress of title Par.
Source: Ambito
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