When it comes to returns on leading stocks, at the top were Grupo Financiero Valores (31%), Cablevisión (21.9%) and Transportadora Gas del Norte (16.5%).
But the most outstanding was in the non-leading shares: Autopistas del Sol jumped 43.5%; Cellulose, almost 36%; and Camuzzi Gas Pampeana, 34.3%.
“When it comes to local market sectors, much of the optimism was seen in public services. The upward reaction in the actions of this item is explained by the progress of the negotiations between the government and the IMF, especially in what has to do with the reduction of energy subsidies”, commented Maximiliano Donzelli, Head of Research of IOL invested online.
In the next weeks, the board of the IMF and the National Congress must approve a formal agreement. Despite eventual changes in the fine print, The Government is already taking measures that are in line with the agency’s requests (rise in rates, increases in tariffs, acceleration -slight- of the rise in the dollar).
There is “no respite for the local market (…) in the context of Russia’s start of war against Ukraine”, they synthesized from Cohen, who stressed the importance of knowing the fine print of the commitment before the IMF.
Alexander Londonoanalyst at ActivTrades, stated that “Geopolitical and economic risks triggered by Moscow’s attack (on Kiev) are generating high levels of uncertainty and fueling a flight to safety in robust financial markets.”
Country risk and bonds
As far as fixed income is concerned, dollar bonds ended February with a negative variation despite progress in negotiations with the IMF.
The worst performers were in bonds with shorter maturities (2029, 2030 and 2035), which lost between 5% and 7% of their value. For its part, the longest maturities (2038, 2039 and 2041) also fell, but to a lesser extent, between approximately 3% and 4%.
In this framework, the country risk climbed more than 3% in the month, to touch 1,777 points.
Regarding bonds in pesos, those bonds that adjust for inflation (also known as CER bonds) stood out, with a behavior diametrically opposed to bonds in dollars.
Most CER bonds ended the month with a positive return, rising in some cases to 4.7%, which is above the expected inflation for February. Among the bonds with the best returns, the following assets stood out: Boncer 2024 (TX24), Boncer 2026 (TX26) and the Discount in Pesos (DICP), remarked from IOL they invested online.
Last day of the month
The local market closed lower this Friday, as a result of external events after the Russian invasion of Ukraine, while awaiting the agreement with the IMF.
In the stock market, the leading index S&P Merval in Buenos Aires fell by 0.9%, against the fall of 2.9% in the previous session.
Bonds in dollars yielded up to 3%, in step with international events. and andhe country risk rose 11 basis points, with the exposure to uncertainty affecting bonds from emerging markets.
Source: Ambito
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