In this context, the country risk index of Argentina It exceeded 2,700 basis points this Wednesday, a record since the 2020 swap, due to growing distrust about the battered economy and the consequences of the fights in the government coalition.
This JP.Morgan bank indicator It climbed 1.2% throughout the day to stand at 2,683 units, a new maximum at the close since the debt swap with private parties, in 2020.
“These are difficult wheels for Argentine assets. This responds to the expectation generated by the change in the Ministry of Economy and It will be necessary to see the direction of the measures that are taken from now on“said Santiago Abdala of Portfolio Personal Investments.
Batakis took office on Monday after the untimely resignation of Martín Guzmán, who left the portfolio over the weekend citing strong opposition to his administration.
“Silvina Batakis has a more heterodox profile and faces a market that asks for a more orthodox solution to correct the current imbalances,” said Research for Traders, noting that “the new minister will have to face inflation of more than 70% per year, a high fiscal deficit and a stagnant economy while maintaining dialogue with the International Monetary Fund ( IMF).”
Argentina must meet quarterly goals agreed with the IMFamid rampant inflation, slowdown in economic activity and exchange rate pressures that complicate the role of the central bank (BCRA) and the accumulation of reserves, which led to recent restrictions on the import sector.
“After the resignation of Guzmán and his team, the base scenario is worse”, settlement and clearing agent Neix said, adding that “the minister has little time to show results (…) The base scenario is one of greater uncertainty with a direct impact on inflation and exchange rates.”
Secondly, CER bonds rose to 6.7% thanks to DIP0. The TX26 (+5.4%), and the CUAP (+5.1%) also posted strong increases. Market sources insisted again that the BCRA and the pension entity Anses repurchased bonds throughout Wednesday to cushion the collapse in prices.
“Debt with CER adjustment rose 0.4% in the short section (Leceres and Bonceres Cortos) and 1.7% on average in the long section of the curve,” reported the SBS Group.
For its part, the dollar-linked sovereign debt traded again mixed, offered in the short part of the curve that fell 0.7%, but somewhat more taker in the long section that gained 0.3%, completed SBS.
Stocks and ADRs
For its part, the S&P Merval stock index gained 2.6% to 95,075.87 units. Operators maintained that “opportunity purchases segmented on shares that serve as a safeguard against inflation and devaluation” stood out.
In the leading panel, the rises were led by BYMA (+9.1%), Loma Negra (+6.8%), and Sociedad Comercial del Plata (+5.8%). On the other hand, the only two declines were for Cresud (-1.5%) and for Grupo Galicia (-0.1%).
This day the total volume in equities was located in the $6,323 million, of this total 75% corresponded to Cedears with $4,779 million operated and 24% for Argentine shares with $1,544 million. On Tuesday, the volume of Cedears was a record with $9,286 million.
As to Argentine companies listed on Wall Street closed unevenly. The greatest increases corresponded to Loma Negra (+4.4%) and Central Puerto (+1.7%). For its part, the main declines were for Edenor (-4.3%), and Tenaris (-3.7%).
Source: Ambito
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