The S&P Merval index of Argentine Markets and Stock Exchanges (BYMA) lost 0.9%, to 102,271 pointswhich is added to the 2.5% of the two previous sessions.
The main falls were recorded by the shares of BYMA (5%), Cablevisión (4.1%) and Comercial del Plata (3.2%); while the most important increases were recorded by the titles of Aluar (0.9%), Mirgor (0.7%) and Pampa Energía (0.7%).
Meanwhile, on Wall Street, Argentine companies operated with mixed results, with Edenor leading the advances (4.2%) and Corporación América and Grupo Financiero Galicia, the losses (-2.8%).
Lucas Yachehead 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.
After the close of the day, the resignation of the head of the National Securities Commission (CNV), Adrián Cosentino, was announced, who will finally be replaced by the current vice president of the body, Sebastián Negri, as ordered by the Minister of Economy, Silvina Batakis Official sources confirmed to Telam. In the market, caution prevailed after the departure of Cosentino. “We will have the reaction of the market this Thursday,” they ventured.
Bonds and country risk
The dollar bonds traded with the majority of declines throughout the entire curve of local legislation and in the shorter sections of foreign legislation.
For its part, the reference bonds AL30 and GD30 maintained a day with good volume and calmer in reference to the previous weekwhen uncertainty completely embraced the local market and dollar transactions by market through said bonds were the protagonists of the trading volume of each day.
On Wall Street, the Argentine bonds opened offered in the first operations, but some demand appeared in the middle of the round and they closed practically without changes, highlighting the Global 2030 that rose 25 cents.
“Anyway, the little certainty for the moment does not dissipate and the high yields above 40% translate into prices (at the time this comment is written) around US$18.18 for the LA30 and US$20.77 for the GD30,” said Javier Rava, an analyst at Rava Bursátil.
A) Yes, the country risk rose one unit to 2,729 basic points, after reaching a maximum intraday historical level of 2,740 points.
“Argentine bonds in dollars are trading at rates that are not compared to any other LATAM or emerging country,” said the clearing and settlement agent Neix, noting that “the pressure on the debt is so great that even paying 100% of the initial investment over three years for some instruments are attractive.
For their part, the CER-indexed bonds “They experienced a notable appreciation, and in a vertical line wheel after wheel with a certain probability of the participation of state agencies to hold the debt in pesos, the same since the confusion generated weeks ago in said debt in pesos and more precisely in the CER bonds,” Raba added.
Meanwhile, with good volume in the short section, dollar-linked sovereign bonds returned to mixed trading, with T2V2 taking the lead (+0.4%) but offering the medium and long section of the curve, which fell 1%.
Finally, Economy managed to take $122,670 million in its tender this Wednesday, of which almost 50% was taken by the October Lede at a rate of 63.46% TNA. In addition, 45% of the outstanding of the S29L2 and 33% of the X29L2 were exchanged.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
