The actions of the S&P Merval and the bonds fell up to 4% and opened the week down after the index marked losses of up to 14.4% during August. At the same time, the first day of the month did not have the reference of Wall Streetsince he is a national holiday for Labor Day in USA.
The stock market index fell 2.1% to 1,939,743.31 points, while its dollar counterpart did it 3.4% to 1,414.43 points. Among the main roles that led the losses, they stood out: byma (-3.9%); IRSA (-3.8%); South gas transporter (-3.7%).
Last week, the local selective exhibited a weekly setback of -5.8% and monthly of -14.4%. All sectors presented downward movements, especially industrial (-11.6%), which was the least favored.
“Next Sunday will be the elections in the Province of Buenos Aires And one of the main challenges that the national ruling will face to show its competitiveness at the polls explained on this day Bursatile. “The market began to practice a defeat with the latest news and, if that result is not completed, the values of the shares and bonds can be shot”he added.
In this regard, the economist José Ignacio Bano assured a Scope That the political factor was the one that weighed the most in the variation of the assets on this day, on the eve to what will be the electoral instance in PBA, which will work as a great sample of what can be the result of the legislative elections nationwide.
In addition, The specialist said the assets experience “volatility” following the elections and political noise around the government, but that it is not a marked trend. According to Bano, if the ruling party makes a good choice, it will have “more amplitude” to take measures through decrees without being rejected by the Congress.
In that line, Bano emphasized the antagonistic visions at an economic level between the government and the opposition. “Clearly, for a person making an important investment decision, or a company wanting to put a plant, it is not the same as a government or other”he said.
When referring to economic indicators, Bano said that these are “more or less stable, for better or worse”with a activity level that does not grow and a exchange rate with constant measures by the economic team to “keep it at bay.”
IEB group salts, Nicolás CappellaHe stressed that while “a wheel without much reference and little volume” because of the American holiday, the local market had “a ugly day.” “The choice of currents did not throw a reassuring mantle on the eve of the PBA elections”he slid over the lean result of the ruling party in the elections of that province, where he reaped less than 10% and positioned himself as the fourth force.
For their part, from PPI they indicated that the week is expected to be crossed by volatility at the local level following the mid -term elections, while the International Front will continue to be decisive before the possible signals of the Federal Reserve (Fed) of the US to make a 25 basic points cut in interest rates.
Bonds and Risk Country
On the other hand, the dollar bonds go back in their entirety. He Bonar 2041 lower 3.6%, the Bonar 2035 it does 3.1% and the Bonar 2035 loses 2.7%, like the Bonar 2038 and the Global 2038.
The dollar titles presented generalized price drops in the last week of August and lost 3% on average. On the other hand, the titles under local law replicated the dynamics in -3.1% and the bonds adjusted by CER stood out among the sovereigns in pesos with an average rise of +3.2%.
The last data of country risk (EMBI, prepared by JP Morgan) of August 29 showed a value of 829 basic points and threw a 1% drop with respect to the previous record.
August, a month for oblivion
In Wall Street, Edenor Headed the monthly losses of the Argentine assets after contract 25%. It was followed by Supervielle Group (-24%) and BBVA Argentina (-23%). In addition to the impact by the scandal on the Andis, the monthly fall of the papers was explained from the government’s legislative setbacks in the Congress.
In August, the S&P Merval lost 14.4% to 1,984,845.04 points, while its counterpart in dollars made it 14.3% to 1,463.26 points. At a monthly level, Sovereign titles in dollars retreated between 2.5% and 5.7%, with greater punishment in the titles Local Law against those of New York Law.
Source: Ambito
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