After the announcements, the bonds in hard currency go down to 2.6% from the Bonar 2041 hand. The decreases are also led by Global 2029 (-2.5%), and Bonar 2035 (-2.4%). In that framework, the risk country measured by JPMorgan falls 1.5% to 2,400 basis points.
“It is an ordinary day without atypical movements in stocks and bonds. If something is weak, it is the bond market and the stocks, they are mixed. The dollar has a slight rise, and follows today’s global trend that is slightly downward, in what are Argentine papers. There are no sudden movements as if the market had disapproved or approved measures, because there were no concrete measures“, he told Ámbito Raphael DiGiornoDirector of Proficio Investment.
To its turn, Mauro Cognettaexecutive director at Global Focus Investments, analyzed how the market took the appointment of Sergio Massa as head of the Treasury, “It was with good eyes since he is a person with more political support than Batakis”. And about the last few days he said that “this was manifested in the actions that rose strongly, especially in those linked to what is called the ‘red circle’, or the businessmen close to him, such as Vila, Manzano, Mindlin.” And in this regard he emphasized the strong rise in Edenor’s paper.
“The bonds had a good performance but from underground. The dollar also corrected. We are not oblivious to what is happening abroad and the peso appreciated in the same way that the Brazilian real and emerging currencies moved,” he stressed. Cognetta and expanded that “last week there was a very good performance at the general level of the financial markets and Argentina accompanied”.
Regarding the announcements of the new Economy Minister, the director of Global Focus Investments said that “everything. Yesterday’s announcements were not entirely convincing. There were no specific questions, they were promises. What does happen is that Massa has a stronger political power. We have to see how the measures take shape over the months.”
S&P Merval and ADRs
The S&P Merval stock index down 0.8% to 119,375.08 basis pointsafter improving 1.4% the day before. Thus, in the leading panel, the main decreases are for Aluar (-3.3%), Ternium (-2.8%), and Central Puerto (-2.3%). Among the increases, Edenor (+2.7%) and Transener (+1.9%) stand out.
For its part, Argentine papers listed on Wall Street operate mixed. The gains are led by the shares of Globant (+3.6%), Despegar (+1.6%) and Corporación América (+1.5%). Losses are led by Irsa (-2.6%), Tenaris (-2.5%), and Central Puerto (-2.4%).
In this session, Mercado Libre wins attention with a rise of up to 15% after presenting a record balance.
“There are no structural reforms; only short-term purposes subject to verification“, said Manuel Solanet, of the Fundación Libertad y Progreso. The containment of the fiscal deficit and the recomposition of the reserves are the relevant points of the announced measures. In both cases there are no certainties”, he estimated.
“Although they are going in the right direction, they are not capable of facing an inflationary process of the magnitude of the current one, which threatens to reach 100% annually,” added Víctor Beker from the Center for Studies of the New Economy of the University of Belgrano.
On the other hand, a report Goldman Sachs launched a harsh remarked that “AArgentina needs a more conventional and disciplined policy mix to rebalance the economy, And that means, first and foremost, establishing a credible path to structural fiscal consolidation and an exchange rate that can reflect the macro fundamentals that would require a bold reduction in financial repression/controls.”
“Massa’s speech aimed rather at giving signals on certain issues, and most of the announcements were proposals or measures under study, the details of which will be known in the coming days,” said Isaías Marini, an economist at the consulting firm Econviews.
The Argentina-based regional e-commerce giant reported on Wednesday that its profit rose 79.8% year-on-year in the second quarter to $123 million. The company’s quarterly profit beat Refinitiv’s analyst forecast of $98.9 million.
Source: Ambito
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