“Global (bonds) did not buy the Batakis measures. It seems that investors have doubts about this more fiscal approach that the new minister has tried to show so far,” said the consultancy firm StoneX. In effect, the country risk carried out by the JP Morgan bank shot up 60 basis points to 2,729 units, after marking a record intraday maximum historical level of 2,733 units.
The new Economy Minister, Silvina Batakis, stated on Monday that will maintain goals agreed with the International Monetary Fund (IMF) and announced new measures aimed at reducing the large fiscal deficit, in an attempt to calm the financial markets. However, “the market has doubts about how the announced measures will be applied in the short term, although they help prevent current problems from deepening,” Research for Traders noted.
In the peso segment, on the other hand, CER bonds extended their recovery after the punishment they suffered last month. The greatest rise was for the PAP0 (+8.5%), followed by the PARP (+7.1%) and the TX28 (+6.5%). “Meanwhile, dollar-linked sovereign bonds showed demand in the short section of the curve, which rose 2%, concentrating the volume on Q2V2”, informed the SBS Group.
This day the Central Bank of the Argentine Republic (BCRA), announced that will offer the entities of the financial system the put option on securities of the National Government awarded as of July 2022 and maturing before December 31, 2023.
Also, the BCRA will continue to intervene to reduce the volatility of Treasury instruments and, for debt securities awarded as of July 2022, with purchase bids at a price similar to the value of the primary auction plus a maximum spread of 2%.
S&P Merval and ADRS
in the stock market, the S&P Merval index of Argentine Markets and Stock Exchanges (BYMA) lost 1%, to 103,336.13 points, led by losses posted by energy and financial companies.
On the leading panel, the greatest decreases were for BYMA (-4.5%), YPF (-4.2%) and Grupo Financiero Galicia (-3.2%). On the other hand, the rises of Aluar (+2.1%) and Cablevisión (+1.3%) stood out.
On Wall Street, Argentine stocks closed mostly in negative territory. The decreases were led by Bioceres (-18.1%); Edenor (3.6%); and Irsa (-2.9%).
This day the total volume in equities was $6,394 million, of which 76% corresponded to Cedears with $4,916 millionwhile 23% were for shares of Argentine companies with $1,478 million.
“With greater caution from the North (USA), which is far from contributing, domestic assets add greater pressure and so they continue to deepen the punishments in their prices while the ability and willingness to carry out the economic announcements are evaluated,” said Gustavo Ber, an economist at Estudio Ber.
Source: Ambito
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