In equities, the highest monthly increases were recorded by Loma Negra (+12.3%), Comercial del Plata (+10.3%), and Ledesma (+7.2%). The worst performance was Edenor (-11%), followed by Banco BBVA (-10.2%), Transener (-9.7%), and Grupo Financiero Galicia (-9.7%). “The banking sector showed widespread declines of up to 10%. YPF lost almost 5%,” reported Tavelli.
“The markets were attentive to the advance of the war, with Russia threatening greater interventions and Western Europe imposing new sanctions,” indicated the same report on the global performance of the markets and expanded: “World economies reflect historical inflation data and central banks are more likely to tighten monetary policy, either by slowing down asset buyback programs, reducing balance sheets and/or raising benchmark rates.”
Country risk and bonds
Securities in pesos adjusted by CER showed an upward performance after the inflation data, with greater increases in the shorter ones. The one that led the ascents was the TX23 (+12.1%).
“With the acceleration of inflation, CER bonds had an average yield of 5.3% in pesoswith a great variation depending on the year of expiration, partly due to expectations of devaluation and the possibility of restructuring in the future”, indicated Maximiliano Donzelli, Head of Research at IOL investonline.
And he expanded on his analysis: “We must remember that the CER debt has greatly increased in volume, and economists associated with the opposition are already discussing the sustainability of said debt in a possible change of government.”
For its part, dollar-linked bonds closed with significant gains in all series. The biggest rise was for TV23 (+16.3%).
Bonds denominated in dollars showed a mostly positive behavior (measured in pesos) due to the volatility of the implicit exchange rate. The Argentine country risk rose 12 basis points on Friday to 1,801 units, which reflected an increase of 4% in April.
“In dollar terms, the bonds were not so punished since investors with that holding already had their portfolios partially dollarized, so they could be protected against financial dollars,” closed the Head of Research at IOL Invested Online.
Source: Ambito
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