While, The interest on the CER debt continues pending the inflation data. The bonds that rose the most were: the PAP0 (+4.3%), the CUAP (+1.8%), and the PR13 (+1%).
“With inflation winning the nominal race, beyond the adjustment of interest rates and the acceleration of the devaluation of the official exchange rate, we continue to recommend being positioned in short-term CER bonds”affirmed Martín Polo, Chief Strategist of Cohen.
The analyst also recommended “the short LEDs that present attractive yields with TNA of 75%”. “With the BCRA with greater strength in its international reserves, we believe that the bonds adjustable by exchange rate are less attractive, although we recommend maintaining a proportion in the portfolio as currency hedging,” he added.
Outside of them, Polo said that in his portfolio of recommendations “we find value in CER instruments with pre-PASO expiration, such as the TX23 and the Lecer for January and February. In terms of devaluation coverage, dual bonds seem to us the most attractive given the advantage of having devaluation and inflation insurance.”
In this context, the country risk fell 0.2% to 2,762 basic points.
Stocks and ADRs
The Buenos Aires stock market operates lower this Thursday due to taking profits prior to the four-day inactivity due to the holiday on Friday and Mondayin a market conditioned by local economic uncertainty and global risk aversion.
The Argentine markets will remain closed Friday and Monday for a tourist bridge holiday and the “Day of Respect for Cultural Diversity”, respectively.
BYMA’s S&P Merval fell 0.8% to 145,513.62 points, with sales led by energy companies. On Wall Street, Argentine papers operate unevenly with rises of up to 4% thanks to Transportadora Gas del Sur, Loma Negra (+1.9%) and Irsa (+1.4%). Meanwhile, the setbacks belong to Ternium (-2.4%), and Grupo Financiero Galicia (-1.5%).
Wall Street’s main indexes fell on Thursday on fears about persistent inflation and the aggressive cycle of interest rate hikes from the Federal Reserve, while shares of Tesla fell on doubts about the financing of the proposed purchase of Twitter by part of Elon Musk.
Before falling Markets were briefly comforted by data showing a rise in weekly jobless claims as hopes rose that the Fed would make lesser progress on its rapid rate hikes.
The disclosure of figures that showed an increase in weekly applications for unemployment benefits in the United States is another condition for investors, in a market with an eye on the participation of several officials of the Federal Reserve in different public acts.
In this context, the managing director of the International Monetary Fund (IMF), Kristalina Georgiev, He argued that the outlook for the global economy is darkening due to the disruptions caused by the COVID-19 pandemic, Russia’s invasion of Ukraine and weather disasters on all continents, and could get worse.
For its part, the International Monetary Fund will release liquidity in favor of the reserves of the central bank (BCRA). The board of the multilateral credit organization will meet on Friday in Washington and the agenda includes the treatment of objectives achieved by the Argentine government in the second quarter of 2022, which would release almost 4,000 million dollars for the BCRA.
“Attention continues to be focused on the daily balance of BCRA interventions in a stage of lower foreign exchange supply,” said the consulting firm Estudio Ber.
He noted that “thus, beyond the usual seasonality, financial dollars appear relatively sustained and stable, expecting the administration of a scenario of ‘more pesos, less dollars’ in this last quarter”.
The Ministry of Economy confirmed to Reuters the trip during the coming week of its head, Sergio Massa, to the US capital to attend the annual meeting of the IMF and the World Bank.
Source: Ambito
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