Against that backdrop, along with a steep drop of financial exchange ratesthe leading S&P Merval index it gained 1%, to 123,333.93 units, chaining seven advances in the last 8 wheels.
YPF shares rose 3.5% after reporting earnings of 94,063 million pesos (751.2 million dollars) in the second quarter of the year on Wednesday, compared to a loss of 46,262 million pesos in the same quarter of the previous year. Also highlighted in the day was the performance of Transportadora de Gas del Sur (+4.6%), and BBVA bank (+3.1%).
were negotiated $13,455 million in variable income, of which 88% corresponded to Cedears.
Investors were attentive to the Consumer Price Index (CPI), which accelerated to 7.4% in July, the highest figure in 20 years since it compares with a jump of 10.4% recorded in April 2002 after exit from convertibility. To try to stop the escalation of prices and stabilize the foreign exchange market, the BCRA raised its reference interest rate by 950 basis points to 69.50% per year, following the line drawn by Minister Massa last week. In addition, the rate of retail time deposits went from 61% to 69.5%.
“The BCRA shocked the market with a rate hike. In this way, it is determined to calm the excess of inflationary expectations and, at the same time, seeks to encourage the liquidation of agriculture,” commented from PPI.
The reason? Try to reverse your selling position in the MULC that worries: -u$s822 million so far this month. This Thursday, he bought just $3 million in the foreign exchange market, accumulating 2 days of brief purchases. Subtract the running of the upcoming wheels to confirm a change in trend, they added from PPI.
From Aurum Valores, they indicated that “The BCRA’s rate hike to 69.5% seeks to decompress the exchange front by increasing the cost of borrowing in pesos so that dollars are liquidated. But the expectation of devaluation remains so high that the rate hike continues to go behind the curve. In addition, it will force the Treasury to raise the rate in the next tenders (just over $110,000 million remain to expire in August between 08/16 and 08/31), aggravating the fiscal and quasi-fiscal cost.”
The market remains attentive to the implementation of a series of economic measures recently announced by the new Economy Minister, Sergio Massa, which seek to reduce the fiscal deficit, strengthen BCRA reserves, reduce inflation and give a greater boost to trade.
Argentine stocks on Wall Street
On Wall Street, meanwhile, Argentine stocks ended up mixed. The advances were led by South Gas Carrier (+4.9%); Macro Bank (+4.6%); and YPF (-4.4%). Among the losses, the papers of Mercado Libre stood out (-3%); Supervielle Group (-2.2%); and Edenor (-1.3%).
In the US, on the other hand, the wholesale inflation for July was known, which showed deflation of 0.5% m/m when a rise of 0.2% was expected (the interannual variation was 9.8% versus 10, 4% expected).
Despite this fact, The market took a break after yesterday’s rally and the S&P 500 fell 0.1% after being up 1%. For its part, the 10-year bond rate climbed 11 basis points to 2.89%, while WTI oil rose 2.4% to US$94.15.
Bonds and country risk
In the fixed income segment, sovereign bonds denominated in dollars they rebounded up to more than 3.5%, after a similar fall in the previous day, and finally following the sentiment of their emerging peers. Advances Responded to Global 2038 (+3.5%); to Global 2041 (+2.8%) and Global 2030 (+2.4%).
For his part, the risk country measured by JP Morgan bank down 1.4% 2,442 units.
In the peso segment, CER titles closed unevenly, with the July inflation number already discounted by the market. Advances were led by the PR13 (+2.2%) and the Quasipar (+1.2%). Among the casualties, meanwhile, appeared Par (-1%); and the Boncer 2023 (-0.7%, TX23).
For their part, dollar-linked sovereign bonds were in demand and with good volume, especially in the short section: they gained 0.5% on average along the curve (except for Q2V3, which closed stable), highlighted from the SBS Group.
The Ministry of Economy tendered this Thursday some $182.0000 million three Treasury Bills in pesos maturing in 2022 and 2023, after achieving 85% acceptance this week in a debt swap with short-term maturity for some 2 trillion pesos (about 14.95 billion dollars) for dual bonds (dollar -link/inflation) maturing in June, July and September 2023.
The dual bonds manage to protect the investor against inflation and/or devaluation, explained Delphos Investment and pointed out that “We think the stocks have some appeal. However, considering the sheer mass of maturities coming up next year, investors should be cautious.”
Source: Ambito
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