But, with widespread declines in global benchmark markets, and with investors digesting the political speeches of Vice President Cristina de Kirchner and President Alberto Fernández in recent days, as well as economic announcements by Batakis, Argentine stocks listed on Wall Street closed in negative territory: Mercado Libre lost 6.9%; Bioceres, 5.7%; Cresud, 4.9%; take off, 4.3%; Banco Macro, 4%; and YPF 3.6%. in the opposite direction, the three stocks that closed higher were Tenaris (+2.7%); Central Port (+1.9%); and Loma Negra (+0.9%).
In the local stock market, meanwhile, the S&P Merval stock index of Mercados y Bolsas Argentinas (BYMA) fell 1.3%, to a provisional close of 104,488.48 points, as a result of the drop in the price of the implicit exchange rate (CCL), which was the engine that last week explained the increases in the leading Buenos Aires index (17.5%)
The casualties were led by Cresud (-3.9%); Macro Bank (-3.4%); BYMA (-2.8%); Pampa Energia (-2.8%); and Supervielle Group (-2.7%).
Meanwhile, the main raises were scored by Commercial Society of Silver (+2.6%); Edenor (+1.4%); Cablevision (+1.1%); Alwar (+1%); and Holcim (0.9%).
“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 (PPI).
However, the market believes that the announcements are not enough to correct the current imbalances. “The Minister spoke of the order and balance of public finances. A priori, the message of staying in line with the IMF is positive. However, the announced measures left little to be desired” added from PPI. “Seeing is believing?” Market operators repeated.
“It is expected to have more indications about the position of the other actors that make up the government coalition,” held from another broker. “And furthermore, there is a lack of details on the implementation of several of these measures in practice to understand the magnitude of their effect on fiscal numbers,” they added.
From the consulting firm Epyca they said that Batakis’s speech “added many promises and few immediate application measures” and that the issue involves the exchange rate gap, among other issues.
The positive fact that Epyca highlighted was that “The minister reaffirmed her commitment to maintaining a fiscal path and that should be interpreted in the medium term as a favorable aspect.” “Greater discipline, accompanied by rationality in spending and an agreement with the Fund, could encourage the recovery of local assets”, they added.
Since Adcap Financial Group -the firm led by Javier Timerman- affirmed that Minister Batakis’ statements were in line with what was expected by the market, since she confirmed the continuity of the economic program and ratified the search for fiscal solvency.
But fears of a global recession in the economy with high inflation also drove investors away from risk markets. In the US, and with analysts expecting very high inflation figures for June (expectations are at 1.1% monthly and 8.8% year-on-year), the S&P500 fell 1.2% and the Nasdaq lost 2.3%.
On the other hand, after Elon Musk withdrew his offer to acquire Twitter on Friday, the shares of the social network skidded 11.3% and those of Tesla 6.6%. “Everything indicates that the judicial stage is coming now,” they commented in the market.
Meanwhile, the 10-year bond rate fell 9 basis points to 3%, while WTI oil lost 1.4% to $103.30.
Bonds and country risk
In the fixed income segment, dollar bonds fell again, ending the day down as much as 3.5%.
“Globals began the week pessimistic, and at the open they were already -0.3/-0.5%. Despite the news, and a calmer wheel, they were unable to reverse the trend of recent days and ended in the red along the curve”, they described from a stock exchange company.
In this way, the weighted average of gloables fell to US$21.48, and the average rate stood at 30.57%. The monthly balance for debt thus remains negative, between -11.4% and -15.4%.
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 18 basis points to 2,669 unitscompared to a record 2,728 points scored last week and the initial 1,083 points recorded two years ago.
In In the peso segment, CER bonds had a break: rises of between +0.3/+4.6% were recorded in the short part of the curve, and others of +4/+6% for the medium/long section Of the same.
Finally, sovereign bonds dollar-linked showed selling throughout the day, especially in the short section, which fell an average of 2%.
Dollar
Regarding the foreign exchange market, the price of the official dollar closed at $134.66, 77 cents more compared to Friday.
Thus, the dollar with the 30% surcharge -contemplated in the PAÍS tax-, marked an average of $175.06 per unit, and with the advance payment on account of the Income Tax of 35% on the purchase of foreign currency, $222.19.
In the wholesale segment, the price of the US currency registered an increase of 55 cents compared to the previous closing, at an average of $127.35.
In the informal segment, the so-called blue dollar marked a drop of five pesos, to an average of $268.
In the stock market, the settled dollar (CCL) fell 1.1% to $297.49 and the MEP dollar fell 0.8% to $283.91.
Source: Ambito
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