In the fixed income segment, the sovereign bonds in dollars lost up to 4%, scoring new historical lows given the growing lack of investor interest.
“The decline in the market is worrying, buyers do not appear because the indicators of the inflationary economy and the internal political problems grow daily,” synthesized a banking analyst.
Thus, the Argentine country risk carried out by the JP. Morgan bank renewed historical maximum levels by rising 3.7% to 2,410 basic points.
“The deterioration of the fiscal numbers, with a deficit of 0.25% of the GDP in May, the expansive monetary dynamics and the lack of accumulation of foreign currency by the Central Bank (BCRA) cast doubt on the fulfillment of the goals with the IMF” , Said Portfolio Personal Investments.
Despite the fact that the board of directors of the International Monetary Fund (IMF) approved on Friday the first revision of the agreement with Argentina for a debt of 44,000 million dollars, allowing an immediate disbursement of some 4,000 million dollars, the doubts about the fulfillment of the next quarterly goals is increased. The IMF said the program’s annual targets remain with “some quarterly flexibility.”
On the other hand, and after the intervention of the Central Bank, securities in pesos that are adjusted by CER rebounded up to 10% after the strong liquidation in recent weeks.
“According to market estimates, the BCRA has already issued almost 500,000 million pesos to support the prices of bonds in pesos,” Roberto Geretto, an economist at Fundcorp, pointed out.
S&P Merval and ADRs
In the Buenos Aires bag, the S&P Merval Index improved 1.3%, to 83,650.50 units, driven by the march recorded in energy companies, after accumulating last week a fall of 5.12%.
Despite the important liquidations of foreign exchange from the agro-export sector, the monetary entity has not been able to increase its reserves in the face of important disbursements of dollars to meet energy commitments. Last week he had to part with about 254 million dollars with which he loses about 600 million dollars in the course of June.
In this context, the BCRA announced modifications to the foreign exchange access policy to restrict some operations at a time when the country is facing a significant increase in imports.
“Attention continues to be focused not only on the evolution of net reserves towards the second half, but also on the possibility of recovering the appetite for local debt (…) since the auctions are the only voluntary financing available to avoid untimely speed up the pace of monetary issuance in the face of already high inflation,” said Gustavo Ber.
The dollar in the marginal square or “blue” was trading at historical maximum levels of 229 pesos per dollar, in a segment with reduced business, but a benchmark for the market, operators commented.
For its part, business in the alternative exchange market was traded at 236.7 per dollar in the “counted with settlement” (CCL) stock market and at 232 in the so-called “MEP dollar”.
“Attention continues to be focused not only on the evolution of net reserves (of the central bank) towards the second semester, but also on the possibility of recovering the appetite for local debt,” said Gustavo Ber, an economist at Estudio Ber.
An improvement in the debt is “indispensable in the face of challenging roll-overs, since tenders are the only voluntary financing available to avoid inappropriately accelerating the pace of monetary issuance in the face of already high inflation,” he added.
On Tuesday, the Ministry of Economy will carry out a tender for treasury titles in which it will seek to cover maturities for some 243 million pesos.
In addition, the Ministry managed in the last two days to reduce debt maturities that the Treasury must face next week to only 40%, after two swap operations for $362.5 billion (about $2.923 million).
Source: Ambito
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