As for Argentine companies listed in New York, Mercado Libre led the increases with 6.6%. It was followed by Banco BBVA (+2.8%), Pampa Energía (+2.5%), and Cresud (+2.3%). “The stock market was only able to sustain an upward trend in its businesses underpinned by the improvement of local ADRs listed on the US market,” said an operator.
This week, The new Economy Minister, Silvina Batakis, announced a series of measures that sought to reduce the high fiscal deficit and calm the financial markets. This happened amid escalating inflation and rising exchange rates.
The Central Bank announced this week that the increase applied to purchases made in foreign currency by citizens abroad with credit and debit cards is now effective. In this context, the financial dollar accelerated its upward climb this Friday, and broke through the psychological level of $300 for the first time, turn that the blue dollar hit a new high and closed at $293.
On Thursday, meanwhile, The National Institute of Statistics and Censuses (INDEC) reported that the Consumer Price Index (IPC) rose by 5.3% in Juneaccumulating a rise of 36.2% so far this year and 64% in the last 12 months.
“The sharp rise in inflation and exchange rate pressures keep investors’ attention”said an operator and added that “There is no mood in the market for the market to take off. There are many doubts and few certainties in the market, that is why the investor prefers to be liquid and covered”.
Bonds and country risk
Argentina’s bonds touched new historical lows, in a market that did not find a floor due to the lack of investor interest despite its hefty returns. The risk countrymeanwhile, after hitting a new record since the debt swap in 2020, stopped its upward climb.
Market analysts argued that this Friday There were strong disarming of positions in assets in pesos due to the search for coverage in dollars.
Thus, the largest decrease was for the Bonar 2041 (-2%) and the Global 2046 (-2%). In this framework, the country risk carried out by the bank JP. Morgan fell 0.07% to 2,754 basis points, after marking a maximum intraday historical level of 2,772 units.
“The balance for the month of July looks worrying for global (bonds) sinking at every passing wheel. Losses so far this month reach between -15.2/-17%, and in the year it rises to -35.2/-47.4%“said Portfolio Personal Investments.
For its part, dollar-linked sovereign bonds “were borrowers along the curve”, especially in the short section that rose 2%, said the SBS Group, which also marked a good volume. Finally, debt with CER adjustment traded mixedshort Leceres and Bonceres grew by 0.7%, while the medium tranche fell by 3%.
Source: Ambito
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