In this context, bonds denominated in dollars plummeted to 8.1%, after falling more than 11% at the beginning of the day. The largest casualties were led by the Global 2035 (-8.1%); Global 2030 (-7.6%); Global 2041 (-7.5%), followed by Global 2038 (-7.3%), and Bonar 2035 (-6.9%).
The minister who renegotiated the foreign debt and spoke of “normalizing” the economy left his post on Saturday after facing criticism from the ruling party itself, specifically from the Kirchner wing of the Frente de Todos.
With that behind, the dollars, which come from days of strong exchange rate tension, returned to operate with significant increases after a climate of high uncertainty.
“Although the election of Batakis can be interpreted as an increase in the probability of a change of administration in 2023, we believe that the negative short-term effects will prevail on Argentine bonds”, they said from Portfolio Personal Investments.
Meanwhile, the titles in pesos adjusted by CER fell to almost 6%with declines led by Discount (-5.8%), Par (-4.8%); the Boncer 2026 (-3.4%), and the Boncer 2028 (-2.7%).
The designation of Batakis “what marks is that effectively the weakness of the president (Alberto Fernández) today is very great, he could not appoint a Minister of Economy more aligned with his position “affirmed María Castiglioni of C&T Economic Advisors.
Without operations in the US this Monday, let us remember that the Argentine country risk closed on Friday at 2,374 basic points.
“The conflict has tipped the field in favor of Cristina (Kirchner), who is also concentrating power again,” political analyst Ricardo Rouvier told Reuters.
Batakis is considered close to the vice president, the most powerful politician in the government coalition and a staunch defender of the state’s intervening role in the economy and the expansion of public spending.
“I am going to be looking especially at what economic policy decisions transcend and what orientation is to be given to this, and based on that give an opinion on whether the exchange rate is cheap or not,” said the economist and former Finance Secretary Daniel Marx. to the local radio station Radio Con Vos.
S&P Merval
In equities, For its part, the S&P Merval stock index It fell 1% to 89,128 points, after losing more than 3% at the start of the day. However, measured in the dollar “counted with liquid” (CCL), the fall of the leading panel reached 11.2%.
In the local market, stocks closed with widespread declines, led by Northern Gas Carrier (-4.9%); Macro Bank (-4.2%); and Transener (-4.1%). Meanwhile, the few raises of the day responded to BYMA (+5%); Silver Commercial (+2.2%); and Aluar (+2.1%).
The economist appointed by President Alberto Fernández – who intended to keep Guzmán in the portfolio – was in charge of the Treasury portfolio of the province of Buenos Aires between 2011 and 2015, and until now she served as Secretary of Provinces of the Ministry of the Interior of the Nation.
“His appointment shows (…) the risk of turning to a more expansionary fiscal stance amid growing financial imbalances,” highlighted Diego Pereira, an analyst at the investment bank JP. Morgan, through a report.
The bitter months-long dispute between the leaders of the ruling coalition, which led to the change of minister, seems to have damaged the image of the president and his vice president, who will see their chances for the 2023 presidential elections affected, according to experts.
Source: Ambito
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