In that framework, the S&P Merval stock index of Argentine Stock Exchanges and Markets (BYMA) improved a tepid 0.2% to 91,239.22 points.
the papers of Cresud and Loma Negra recorded increases of 3.6% and 2.7%in that order, in the leading panel of the Buenos Aires stock market.
Meanwhile, the ADRs of Argentine companies on the New York Stock Exchange ended with mixed listingson a day in which crest led the pack of gainers with a 2.3% gain, while Bioceres led the losses, down 4.9%.
The sharp rise in inflation, which reached 6.7% in March, the hike in Central Bank rates, the next review of IMF accounts in mid-May and strong tensions in the government coalition are issues that keep the market’s attention .
The market was aware of the imminent official announcement of aid to the most vulnerable population after prices climbed to 16.1% in the first quarter, the highest in three decades, against a maximum monthly inflation in the last 20 years.
The Minister of Economy Martin Guzman He will travel to the United States at night to participate in the spring meeting of the IMF, days before the first review of the organization on the Argentine economy scheduled for May.
On the other hand, the war in Ukraine exacerbates inflationary pressures and the tightening of financial conditions, hitting emerging economies.
In the fixed income segment, dollar-denominated sovereign bonds rose up to 2% on the Buenos Aires stock market, with the leadership of Global 2041.
Meanwhile, the Argentine country risk rose three basic points, to 1,691 units, amid heightened global risk aversion.
“We understand that the significant price differential between the bond issues under local and international legislation would not be justified, since the eventual fate of both would be even”, noted VatNet Research.
In addition, CER bonds (adjusted for inflation) continued to be in strong demand, posting increases of up to 1.3% (TX23). Thus, in the month they accumulated rises of up to 16.2% (Quasipar), while in the year the advances reached 40.3% (Quasipar).
“There is still a significant amount of pent-up inflation in the system due to widespread currency controls, price controls, export controls and public tariffs significantly below cost,” Goldman Sachs estimated.
He added that “in general, Argentina has yet to develop a strong and credible medium-term fiscal consolidation plan and lacks a coherent conventional monetary strategy/anchor.”
“The rise in the ‘Leliqs’ rate by 250 basis points arranged by the central bank is in the right direction, but it can do little in this context to appease inflation. The new TEA is 58.7%, below 60 % of inflation expected for this year,” said Roberto Geretto of Fundcorp.
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.
