The Bonds in dollars extend the casualties With falls of up to 2% this Wednesday, waiting for news from Luis Caputo’s trip to Washington. Instead, the actions revert the bad performance on Tuesday. The ADRS of Argentine companies that quote on Wall Street bounce up to 3.7% and the index S&P Merval of the Buenos Aires bag rises 1.4%.
Despite the rumors that circulated the last hours, the sovereign titles remain down due to the lack of concrete ads about the financial assistance of the US and Investor’s doubts persist while the Treasury Fire Power is complicated before the fifth day of exchange intervention.
The bonds with the highest casualties are the longest titles such as the Global 2038 (-1.9%), Global 2041 (-1.2%) and the Global 2046 (-1.1%). Thus, the country risk rises 5.71% and is located at 1,074 basic points.
Exchange pressures continue to stress the market and put the Argentine treasure in a complicated situation since their holdings from an exceptional liquidation of agro exporters are exhausted.
Operators estimate that the treasure, dependent on the economy portfolio, accumulated in the last six business sessions for more than US $ 1600 million.
“This number becomes more relevant if we consider that many wheels are missing to the elections (mid -term that will be held this month),” said Wise Capital. “In just four days, with the almost total departure of the agro -export sector, the treasure would have already lost 1350 million, that is, more than 60% of the funds obtained during the zero withholding regime, which had contributed 2228 million dollars,” he added.
The legislative elections that will be held on October 26 are considered a thermometer for the government of the libertarian Javier Milei for the last two years of management with minorities in Congress.
In an attempt to give tranquility to the market and stop the pressures, the Argentine Economy Minister Luis Caputo is located in the United States to negotiate an eventual “swap” of coins for US $20 billion.
“After the elections, it is very likely that the new scheme is with a freer exchange rate and lower real rates, allowing the accumulation of reservations and treasure debt role at a more sustainable cost,” said Roberto Geretto economist from ADCAP Financial Group.
Actions: the ADRS and the S&P Merval rebound
On the other hand, the actions do start a partial recovery after recent hard shocks. The ADRs bounce up to 4.5%headed by Edenor, Loma Negra (3.5%), Supervielle Group (3.5%) and BBVA Argentina (3.4%). Meanwhile, the S&P Merval advances 1.4% with advances of up to 4.4% led by Ternium, Aluar (4.2%) and Edenor (4%). Anyway, the leading panel of the local stock market crosses a year for oblivion: accumulates a collapse of 45% measured in dollars.
Source: Ambito
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