But with widespread declines in benchmark global markets, Argentine stocks listed on Wall Street were trading in negative territory: Mercado Libre lost 6.6%; Bioceres, 5.7%; take off, 4.4%; Banco Macro, 4.3%; and BBVA, 3.8%.
In the local stock market, the S&P Merval stock index of Argentine Markets and Stock Exchanges (BYMA) fell 2.6%, to 103,065.85 points, after soaring 17.5% over the past week on coverage shots.
“A priori, Batakis’s message to stay in line with the International Monetary Fund (IMF) is positive. The announced measures did not bring any surprises and this helps to avoid further deepening the current noise”, they said from Portfolio Personal Investments.
They added that “However, we believe that they are not enough to correct the current imbalances. In addition, details on the implementation of several of these measures in practice are lacking to understand the magnitude of their effect on the fiscal numbers.”
The Argentine economy is immersed in a growing inflationary escalation, which would reach 76% this year according to a recent survey by the central bank (BCRA), high fiscal deficit with high monetary issue and strong exchange controls.
Traders commented that fears of a global recession in the economy with high inflation kept investors away from risk markets.
“Today’s Argentina needs a space of opportunity with a consensual project to solve its chronic problems and get out of the insignificance in which it finds itself in the global economic context. An effective plan must necessarily be credible,” said a VDC report. Consultant.
Bonds and country risk
In the fixed income segment, bonds in dollars operated unevenly, with increases of up to 1.7% among the Bonares, and falls of less than 1% on average among the Globals, after trading at historical minimum levels with rates above 40% in dollars.
Last week, the Government paid some 425.6 million dollars in interest to holders of Global bonds under foreign law and this Monday it will pay the interest corresponding to Bonars under local law, commented analysts.
“Hopefully today’s (Monday) announcements come true”said Francisco Grismondi, former director of the BCRA, who described them as more orthodox.
Thus, the country risk measured by the JP Morgan bank rose 12 basis points to 2,662 unitscompared to a record 2,728 points scored last week and the initial 1,083 points recorded two years ago.
Source: Ambito
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