$6,070 million in equities were traded, highlighting the performance of YPF (+1.1%), which traded almost 15% of the total volume in local shares.
On Wall Street, meanwhile, Argentine ADRs closed unevenly, with rises led by Mercado Libre (+5.3%), and falls led by Cresud (-3.1%).
The e-commerce giant announced on Tuesday that it will invest some US$3.44 billion in Brazil in 2022, 70% more than last year, as part of its strategy to grow and consolidate business in the country. (a “significant” part of the amount will be invested in expanding Mercado Pago’s operations). In February, the Argentine company announced that it would also increase its investments in Mexico to 1,475 million dollars.
The financial market expected an imminent rise in the reference rate of the central bank (BCRA), after the sharp rise in inflation of 4.7% in February and to adapt to the understanding reached with the IMF, which says that bank yields must be positive compared to to inflation.
Last week, a source close to the BCRA board announced that the increase would be between 150 and 200 basis points, from 42.5% per year of the liquidity letter (Leliq) at 28 days.
President Alberto Fernández held a zoom meeting with the managing director of the IMF, Kristalina Georgieva, who confirmed that the body’s Board will discuss the agreement this Friday. The organization extended until the end of the month the expiration of some 2,800 million dollars that had to be canceled with the beginning of this week to avoid the ‘default’.
“Beyond the agreement with the IMF, investors anticipate that a new restructuring could be necessary in a few years, even more so given the postponed commitments with the organization with which they would pile up,” said the economist Gustavo Ber.
He added that “the understanding also fails to arouse enthusiasm since the political tensions within the ruling coalition could complicate the management of the Government and the implementation of the fiscal, monetary and exchange strategies necessary to meet the goals, which is crucial to receive the disbursements within the agreed program”.
“We see a market looking for a pause, we are coming from sudden movements according to the situation, but the lack of good liquidity takes away traction in some assets”, synthesized a banking agent.
Meanwhile, Economy Minister Martín Guzmán is in France to negotiate a debt of some 2,000 million dollars with the Paris Club, hoping to have the approval of the IMF.
Internationally, Federal Reserve Chairman Jerome Powell’s comments on Monday about a more aggressive monetary policy, They continued to fuel increases in Treasury bond rates, which are at their highest since May 2019. A) Yes the 10-year bond rate closed at 2.38%, the same level as the 3-year rate. On the other hand, WTI oil fell 1.4% to US$108.5, while the price of natural gas rose 4%.
In fixed income, sovereign bonds denominated in dollars closed down more than 3% on the Buenos Aires stock market. The most salient falls were scored by the Bonar 2035 (-3.3%); Bonar 2029 (-2.3%); and the Global 2038 and 2041 (-2.1%).
On Wall Street, sovereign bonds fell an average of 20 cents across the curve, with Global 2035 and 2046 underperforming, losing 25 cents, while Global 2041 fared better, only falling 10 cents.
In this frame, the Argentine country risk It rose three units to 1,794 basis points.
For their part, dollar-linked bonds in pesos were in demand and gained an average 0.5% along the curve, with greater interest in TV23, which rose 0.7%.
Meanwhile, CER debt was particularly heavy in the middle tranche, coinciding with the Treasury auction, falling 0.3% on average, SBS said.
Finally, in the second tender of the month, The Treasury raised $43.9 billion, of which 55.8% went to the Bonceres, concentrating the demand in Q2X4 ($19.3 billion).
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
