The dollar bonds advance slightly, but the ADRs go back while the market awaits Caputo’s trip to Washington and the US financial support.
The Bonds in dollars They operate with slight increases on Monday, October 6 while the ADRs operate with falls of up to 2.4%. The market is still waiting for advances in the negotiations that Argentina is carrying out – led by the Minister of Economy, Luis Caputo – In Washington To try to agree on the small print of the aid that will provide the US Treasury for debt expiration payment. Although the ruling managed a certain truce in the markets last week, uncertainty and volatility still prevail.
Titles in dollars extend the rebound last week, and rise up to 1.2%headed by the AL29, GD38 (1.1%), GD41 (0.9%) and GD35 (0.5%). Thus, the country risk measured by JP Morgan lows 7.30% to 1,080 basic points.
“The US Treasury support for the economic program with US $ 20,000 million is overwhelming,” said economist Roberto Geretto of Adcap Financiero Group. “However, the market expects more than signs, more details on the loan or program are necessary to calm tensions and guarantee the financial program regardless of the electoral result,” he added.
In an attempt to calm the exchange market, the Government ordered at the end of September temporarily eliminating tax exports taxes and its derivatives, including biodiesel, and sales of corn and wheat, with the intention of increasing the offer of dollars. “While the liquidations of the agricultural sector between September 23 and October 1 reached US $ 6,102 million, the treasure only managed to capture US $ 1,668 million, just 27% of the total,” said Gma Capital Research.
“The purchasing rhythm (officers) was deflated day by day and the opportunity to strengthen reservations vanished. The treasure even came to sell dollars for US $ 650 million in two days,” he recalled.
“The current dynamics shows that political risk has become the main variable to follow. This feeds the prudence of investors, who expect the outcome of October as a condition to project the continuity and sustainability of the economic program,” said Andean investments in a report.
S & P Merval & Adrs
The leading panel operates with falls of up to 1.3% to 1,780,930.33 and a 1% decrease in dollars, at 1,170.38. The shares are listed with casualties of up to 2.3%led by Metrogas, Grupo Financiero Galicia (-2.2%), Central Puerto (-2.1%) and Ternium (-2%). The Merval accumulates so far this year a loss of 29.5%.
In Wall Street, Argentine roles yield up to 2.5%of the Grupo Financiero Galicia, Loma Negra (-2.07%), Mercado Libre (-1.6%) and BBVA Argentina (1.5%).
Source: Ambito
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