However, there were exceptions of favorable returns in companies involved with the electric power sector. Edenor rose 2.95%, Transener 2.75% and Aluar 2.2%, after the National Electricity Regulatory Entity announced the application of the new rate table for the metropolitan area of Buenos Aires, where households will have an average increase of 16.53% for those who do not receive a social rate and 7.7% for those who have said benefit. Likewise, for commercial users the average increase will be from 16% to 19%.
In New York, the most important falls were registered by IRSA (4.4%) and Despegar (3.8%).
In May, after a very negative April in the international markets, the rate of falls slowed considerably, and some Argentine stocks took advantage of it, since they achieved advances of up to 12.4% in the Buenos Aires stock market, although within a of marked selectivity. Bonds in dollars did not suffer the same fate, as they were punished again, and suffered drops of up to 6.1%, even reaching, towards the end of the month, minimum levels since the swap with private parties.
Unlike what is happening in the international markets, the local market stocks were favored in May and, to the surprise of many, they are having a much stronger year than the Wall Street indices,” he says. Maximiliano Donzelli, Head of Research at IOL.
Argentina announced the day before that it had agreed with the Paris Club to defer debt payments until the end of September 2024 or until a new agreement is reached, which is officially intended to be closed this month through longer terms and rate reductions.
Bonds in dollars and pesos
Regarding fixed income, CER-indexed bonds readjust and compress the rate along the entire curve. While inflation concerns are high, it is possible that expectations about the stretch of the current presidential term have overreacted, leading several bonds maturing in 2023 to neutral yields + Cer, perhaps expecting a reduction in expected inflation. A similar dynamic occurs in the Dollar Linked maturing until 2023.
To end, dollar bonds also fell, albeit slightly. The reference bonds AL30D and GD30D closed with negative variations of only 0.03% and 0.10%although the most significant is still the ratio between local and foreign legislation, higher than 14%, which exposes the clear choice by the global ones due to greater legal certainty in the face of adverse events.
Meanwhile, the first virtual review by the International Monetary Fund (IMF) is progressing on the commitments assumed by Argentina in the new agreement signed in early March, which includes reducing inflation, lowering the fiscal deficit and reducing subsidies, among other points. .
The current reserves tend to complicate the fulfillment of one of the goals before the IMF. The recent agreement with the credit organization for a debt of some 44,000 million dollars set as a goal for the end of June an increase of 4,100 million dollars in the net international reserves of the local monetary entity.
Source: Ambito
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