The Argentine papers closed with the majority of rises on Wall Street that, in some cases, reached 6.9%, such was the case of cresud. In addition, the shares of Free Market (+6.8%); YPF (+4.1%); and Telecom (+3.1%).
With that momentum and another rise in the CCL dollar, the S&P Merval stock index advanced 2.5%, to 89,645.88 points, after the strong rise of 4.04% recorded the day before.
Stocks in the energy and financial segments led the market improvement.
The Senate was debating the version agreed between the administration of President Alberto Fernández and the credit institution to restructure a debt of 45,000 million dollars, with which the country seeks to leave behind a long financial crisis.
“It seems to us that it is a very important instance (…) it is the first time that this historic debate takes place in the National Congress,” highlighted the presidential spokeswoman, Gabriela Cerruti, at a press conference.
The IMF’s executive board will discuss the Argentine issue after it obtains congressional approval, IMF spokesman Gerry Rice said in Washington.
The senators will discuss the fair understanding at a time of political tensions within the ruling coalition, just three days before the country is due to face the payment of some 2,000 million SDRs (about 2,800 million dollars) before the credit institution in two parts .
“Today (Thursday) the vote will take place in the Chamber of Senators where the Government will seek to approve the bill related to the technical agreement with the IMF, with the Government showing optimism regarding the outcome”maintained the financial Grupo SBS.
The agreement establishes a grace period of four and a half years, and extends disbursement payments to 10 years, so the country will begin to pay off the debt in 2026 and end in 2034, with quarterly goal reviews.
On the other hand, it is worth noting that the geopolitical crisis due to the war in Ukraine and the recent rise in rates by the Federal Reserve have become two guidelines with a high impact on emerging markets such as Argentina.
Bonds and country risk
In the fixed income segment, debt in dollars closed with disparity. The rises were led by Global 2038 (+3.3%); while the falls were led by Global 2029 (-1.8%).
In that framework, The Argentine country risk of the JP. Morgan bank fell 18 units, to 1,762 basic points, lows in three weeksfrom its base around 1,080 points at its September 2020 reset and the top at 1,991 at the beginning of the previous week.
In the weight segment, CER-adjusted bonds accelerated their bullish rally, gaining up to 5.8% (Quasipar), after learning this week that February inflation jumped to 4.7% per month, well above what the market estimated. Other strong advances were noted by the Bonzer 2028 (+2.1%); and the Boncer 2022 (+1.1%).
Source: Ambito
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