Among the gains, those of Pampa Energía (9.5%) and YPF (9%) stood out, in a context in which crude oil prices in international markets consolidated above US$100 and scored new highs since 2014, and before the projected increase in rates at the local level.
Local stocks listed on Wall Street (ADRs) also exhibited the majority of increases in their prices, led by Irsa Propiedades Comerciales (8%).
President Alberto Fernández said on Tuesday in his opening speech of the ordinary sessions of Congress that he hopes to send the agreement with the IMF this week for legislative approval.just three weeks from an expiration date with the agency for some US$2.8 billion.
“Fernández closed the agreement with the IMF and advanced some guidelines on the tariff issue, which is key both for the deficit goal and for this year’s inflationary dynamics. The president once again affirmed that there will be no ‘tariffs’ and that the variation of the rates will not exceed the rise in wages,” said the consulting firm Delphos Investment.
It is worth remembering that the domestic market remained inactive Monday and Tuesday, with foreign businesses showing weakness in prices due to fears generated by the escalation of war on Ukrainian soil.
Country risk and bonds
Regarding fixed income, the scenario of risk aversion in international markets, as a result of the war between Russia and Ukraine, caused sovereign bonds in dollars to start the month with most setbacksled by a decrease of 3.8% in the Global GD35.
“The Argentine globals did not escape the general bad mood of the emerging markets. The uncertainty at the global level hits these credits. The weighted average price broke the US$32 threshold for the first time since January 27, returning to pre-announcement levels according to the IMF, and the average yield stood at 20.87%.“, remarked from the portfolio company Portfolio Personal Inversiones.
In that framework, andhe country risk measured by JP Morgan registered a rise of 24 units to stand at 1,866 basis points, the highest level since January 27prior to the understanding with the IMF announced that day by Alberto Fernández and the Minister of Economy, Martín Guzmán.
Finally, the bonds in pesos indexed to the Reference Stabilization Coefficient (CER) operated with the majority of increases, which reached 1.1% in the case of the TX26.
“Inflationary expectations remain high and CER bonds are positioned as the preferred assets for investments in pesos looking for one of the best possible hedges of a positive real rate above inflation,” said Javier Rava, director of Rava.
Source: Ambito
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