Despite a good initial reception for the Central Bank (BCRA) will report the signing of the expected agreement with the US Treasury to advance in a currency swap for up to US$20,000 million, the screens turned around after opening in green and began to reflect a majority of reds between sovereign securities and ADRs, as in the previous days.
Sovereign bonds fall across the board after a positive market opening of up to 2.5%, following the BCRA statement.
From the Puente Research team, they highlighted that the announcement of the swap “is more than symbolic”, since “the agreement prior to the elections is finalized and the doubts that it was conditional on its result are dispelled”.
Nevertheless, The pressure on the exchange rate is expected to remain throughout the week due to the demand for exchange hedgingwhich will persist despite any exchange rate within the band and any level of interest rates until the elections.
For its part, Auxtin Maquieyrafrom Sailing Inversiones, highlighted that, with the swap, the monetary authority “has considerable firepower to face possible runs and defend the ceiling of the exchange rate band.”
However, he understands that volatility will continue to be high, since “the main factor that explains the current nervousness is not external but political.”
In that context, the country risk remains around 1,000 basis points, after the latest data from the country risk (EMBI, prepared by JP Morgan) will show a value of 1,089 basis points as of last Friday the 20th.
ADRs and S&P Merval
On the variable income side, the ADRs they lose up to 5.3% of their hand Pampa Energyfollowed by Supervielle Group (-4.3%) and Edenor (+4.2%).
For his part, the S&P Merval It fell 1.2% to 1,965,438.580 points, while its counterpart in dollars fell 3.1% to 1,248.61 points.
The papers operate with a majority of losses, the main falls are Pampa Energy (-3.8%); Edenor (-3.2%) and YPF (-2.6%). On the contrary, Aluar earns 3.6%.
The economist Gustavo Ber pointed out that “domestic assets lean towards a more cautious tone”while the operators continue crossing wheels in the final stretch towards 26-O, with attention focused on the level of support that the ruling party will obtain.
Source: Ambito
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