The country’s index restarted on September 10, 2020 in the area of 1,083 points after a millionaire restructuring of sovereign debt held by private creditors.
Faced with this scenario, dollar-denominated bonds plummeted again, in some cases losing more than 6%. Among the most prominent casualties of the day were Global 2046 (-6.3%); the Bonar 2035 (-4.9%); Global 2029 (-4.3%); and Bonar 2038 (-3.8%).
In this way, the Argentine titles returned to test the lows of January (before the news of the agreement with the IMF).
At the local level, the market turned its attention to the debate in Congress about the agreement with the Fund. The Minister of Economy, Martin Guzman, presented in the Chamber of Deputies the guidelines of the understanding with the IMF, whose approval is not guaranteed because the ruling party needs the support of the opposition.
Guzmán predicted a difficult and destabilizing scenario for the Argentine economy in the event that the project is not approved.
The new agreement, which must be approved by Congress and by the international credit institution, establishes that the payment period for each disbursement is 10 years, with a grace period of four and a half years, so the country will start paying the debt in 2026 and end in 2034.
At the international level, the conflict in Ukraine triggered a rise in international oil prices, which reached their highest level since early 2008, which fuels fears of higher inflation and lower global economic growth.
Russia announced on Monday that It will immediately cease fire if Ukraine meets a number of conditions, including recognizing Crimea as Russian territory and accepting the breakaway republics of Donetsk and Lugansk as independent states. On the other hand, the United States is considering a ban on oil imports from Russia, which pushed oil up to nearly $140 (Brent).
“The outflow of capital from the funds of emerging countries impacted on the Argentine debt, and annulled the positive effect of the agreement with the IMF staff, at least for now,” estimated the StoneX brokerage.
In the segment of pesos, on the other hand, the dollar-linked sovereign curve rose to 0.4%, “with hands carrying a position to make a synthetic rate in Rofex,” said Grupo SBS.
Finally, and after several days of increases, the CER debt remained practically unchanged, returning something in the middle section (TX26 -0.2%).
S&P Merval and ADRs
After starting the wheel on the rise, the Buenos Aires stock market closed in negative territory, and the S&P Merval stock index of Argentine Stock Exchanges and Markets (BYMA) fell 1.8% to 87,948 pointsafter advancing 1.8% last week.
On the setbacks side, the papers of the BBVA bank (-5.4%); from Galicia (-4.7%); and Cresud (-4.4%).
Among the few shares that closed with increases stood out Aluar (+1.6%); Ternium (+1.2%); and Cablevisión (+0.7%).
Pampa Energía, one of the main energy companies in Argentina, said it projects a 60% increase in gas production to reach a daily record of 11.4 million cubic meters in the winter. Its shares yielded 0.5% on this day.
On Wall Street, meanwhile, the shares of Argentine companies ended with the majority of strong falls, led by Mercado Libre (-9.3%); Cresud (-7.6%); and YPF (-6%).
Only the papers of Bioceres (+5.1%) culminated with increases; and Transportadora de Gas del Sur (+0.9%).
For its part, The main Wall Street indices closed with marked losses, 3% in the case of the S&P 500, 3.6% in the case of the Nasdaq 100, and 2.4% in the Dow Jones index, which also entered the correction zone, by accumulating a drop of more than 10% from its historical record.
Meanwhile, Frankfurt closed with a loss of 2%, London 0.4%, Paris 1.3%, Milan 1.4% and Madrid 0.9%.
On Monday, Asian stocks posted heavy losses due to the effect of the conflict in Ukraine. Tokyo lost 2.94%, falling to its lowest level since November 2020, while Shanghai lost 2.17%. The fall in Hong Kong was even worse: -3.87%.
Source: Ambito
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