Dollar bonds rebound up to 1.7%, and country risk stops escalation

Dollar bonds rebound up to 1.7%, and country risk stops escalation

The main falls are recorded by the shares of BYMA (4.6%), Comercial Del Plata (2.8%) and Banco Galicia (2.6%); while the most important increases are recorded by the titles of Transportadora de Gas del Norte (1.1%), Tenaris (1%) and Aluar (0.7%). Meanwhile, on Wall Street, the companies operating with mixed results, with Edenor leading the advances (4.2%) and Transportadora de Gas del Sur, the losses (3.4%)

Lucas Yatche, head of Strategy and Investments at Liebre Capital, highlighted that “the position of the new Minister of Economy brought some relief to the market, but at the same time many doubts“.

“The tone turned out to be ‘friendly’ but at the moment they are just words, the uncertainty of how the goals would be met remains. The main proposals focus on fiscal balance, including compliance with the agreement with the IMF. At the same time, he proposes the implementation of positive real rates, hard to believe assuming that TEAs above 100% are needed to achieve it,” he stated.

The inflation figure in the United States that is higher than expected by analysts, which leads to an upcoming increase in US interest rates, and a recessive outlook at the global level, overshadows investor sentiment.

“The Latin American stocks weaken with US inflation data hitting 40-year highs, but losses haven’t been that big“, estimated Alexander Londoño of ActivTrades.

“Fears of a global recession and the lack of concrete measures from (Argentina’s new Economy Minister Silvina) Batakis on how a fiscal balance will be achieved and how inflation will be combated are weighing on investor sentiment,” a stock trader said.

Batakis ratified on Monday that the country will maintain the goals agreed upon with the International Monetary Fund (IMF) and announced measures aimed at lowering the large fiscal deficit.

bonuses

In the fixed income segment, bonds in dollars registered increases of up to 1.7%, while titles in pesos operated with rises of up to 4.4%.

Thus, the country risk marked a decrease of 0.4% to 2,718 basis points, after reaching all-time highs since 2020.

Regarding the first primary tender in the Batakis era, which takes place this Wednesday, Yatche indicated that “the weekly maturities approach $10,000 million (with the main private holding)so the main challenge will only be at the end of the month”.

The surprise of this offer is the absence of CER securities, with the presence only of fixed-rate and Dollar Linked securities. Meanwhile, an exchange of LECER -X29L2- and LEDE -S29L2- is proposed (probably so that the BCRA can roll holdings) for Ledes in February and April 2023. “Although the proposal implies upside versus the secondary market, We do not find the idea of ​​stretching duration without indexation attractive, assuming also the loss of liquidity“, indicated the analyst of Liebre Capital.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts