The S&P Merval stock index of Argentine Stock Exchanges and Markets (BYMA) It gained 1.81% to 92,687.41 points, after falling 1.14% last week.
“The intense political and social disputes add another factor of tension in the event of unexpected developments, suggesting the convenience of a predominantly conservative strategy,” suggested Vat Net Research.
On the other hand, the war in Ukraine exacerbates inflationary pressures and the tightening of financial conditions, hitting emerging economies. Argentine stocks climbed this Wednesday up to 9.5% on Wall Street, while the Buenos Aires stock market rose 0, 8%, in a market that was trying to digest the sharp rise in inflation in March, which widely exceeded market expectations.
On Wednesday, the National Institute of Statistics and Censuses (INDEC) announced that retail prices rose 6.7% in March, their highest level since April 2002. In the last 12 months, the index increased 55.1% .
“After the hard data on inflation (…) the operators will begin against the clock to wait for a new rise in the rate of the central bank (BCRA), in search of improving the attractiveness of placements in pesos, encouraging the liquidation of exporters and align it to the strategy of gradual acceleration in the crawling-peg”, said Gustavo Ber from Estudio Ber.
The BCRA board was discussing a possible rise in the interest rate to deal with the escalation in the price index that is suffocating the third largest economy in Latin America.
In addition, the internal tensions in the coalition of the Argentine Government, added to a greater monetary hardness of the Federal Reserve of the United States and the European crisis due to the war in Ukraine, create a waiting period among investors.
bonuses
On Wednesday, the last business day prior to the Easter holiday, bonds on the local OTC market gained an average 0.5%, accumulating an improvement of 0.1% in a short week due to religious holidays on Thursday and Friday.
“CER bonds (adjusted for inflation) continue to be the most demanded for those who must keep pesos,” Criteria estimated.
The country risk realized by the JP Morgan bank lost three basic points, to 1,732 units, against its base of 1,082 units in September 2020 and the record of 1,991 reached at the beginning of last month.
Argentina has just closed an agreement with the International Monetary Fund (IMF) to refinance debt for some 44,000 million dollars, but doubts persist among market analysts about the fulfillment of goals, which will be controlled quarterly.
Source: Ambito
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