The improvement in bond prices is due to the imminent changes in economic policy, which would be implemented with the arrival of the current president of the Chamber of Deputies, Sergio Massa, in the Ministry of Economy, replacing Silvina Batakis, who was appointed three weeks ago after the unexpected departure of Martín Guzmán.
“The expectation of changes in the cabinet, with a focus on economic management, continues to feed tactical bets on domestic assets before operators who seek to anticipate a possible improvement in the expectations of economic agents, an essential catalyst to aspire to a recovery of the punished valuations”said Gustavo Ber, from Estudio Ber.
Batakis has just met with the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, and with representatives of international funds and Wall Street investment banks.
The markets reacted positively, as it is speculated that The new winds will bring about economic changes aimed at normalizing the country’s accounts, at a time when annual inflation threatens to exceed 90%.
For its part, the country risk prepared by the bank JP.Morgan fell 3.1% (82 units) to 2,590 basis points after falling to 2,443 units at the middle of the day and against an intraday historical maximum level of 2,976 units recorded this week.
The improvement in expectations was also reflected in the parallel segments of the dollar, where the “cash with liquidation” (CCL) yielded 5.2% and closed at $321, while the MEP sank 7.9% and pierced the $300 level.
In this framework, the blue dollar fell 3.7% to $314, compared to an intrahour ceiling level of $350 seller pesos recorded last Friday.
On the other hand, On Thursday, the monetary entity raised its benchmark interest rate by 800 basis points to 60%, in an attempt to slow down inflation and stabilize the exchange rate.
S&P Merval and ADRs
In the stock market, the leading stock index S&P Merval of the Buenos Aires bag improved 0.8% to 127,400 points, after skyrocketing in the first trades and reaching a maximum historical intrahour level in pesos of 130,650.78 points.
The leading panel accumulates a climbing close to 20% in the last six trading sessions.
In this framework, the Argentine papers listed on Wall Street closed with general increases, where the jump of 20.1% from Edenor. Other notable rallies were scored by South Gas Carrier (+12.5%); Galicia Financial Group (+8.4%); Banco Macro (+8%) and Loma Negra (+7.8%). The only casualties were led by Despegar (-0.3%).
Source: Ambito
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