“We like some opportunities in stocks. It is also to be viewed with caution. It is not possible to be sure if we are already on the floor outside, there is a lot of volatility, but if we believe that perhaps we have to start paying attention to some names”, said Nicolás Chiesa de Portfolio Personal Investments.
High inflation, which reached 6.2% in September, and exchange rate pressures amid reduced reserve holdings at the central bank, are issues that concern investors.
On the local news the entry into force of the so-called ‘Import System of the Argentine Republic’ stands out (SIRA), a mechanism by which the Government seeks to restrict the sale of foreign currency. “The new system once again compressed the demand for dollars, allowing the monetary authority to absorb the excess available in the wheel,” said Gustavo Quintana, operator of PR Corredores de Cambio.
While, the shares of Argentine companies listed on Wall Street operate unevenly. Among the rises, the papers of YPF stand out (+2%); Telecom Argentina (+1.3%) and Edenor (+1.2%).
While the declines are led by the actions of Free Market (-2.1%); Globant (-2.8%) and Loma Negra (-1.4%).
Bonds and country risk
In the fixed income segment, on the other hand, sovereign bonds in dollars operate unevenly, after the sharp falls in recent weeks. In that sense, the Global 2035 rose 1%, followed by the Bonar 2030 fell 0.9%; Bonar 2029 and Global 2030 fell 0.4%.
While the country risk measured by JP Morgan banking is below 2,800 points.
It should be noted that the Ministry of Economy has scheduled for Wednesday a tender for Treasury securities, with which it will seek to face debt payments in pesos for some 142 billion pesos.
“The sharp increase in debt is a direct consequence of the fiscal deficit. So that the dynamics are not explosive over time, the need for financing will have to be reduced, reducing spending,” said Lautaro Moschet, an economist at the Fundación Libertad y Progreso and added that “In addition, the interest rate, which is increasing, worsens the future outlook and shortens the time the government has to prevent the ‘snowball’ from increasing further.”
Source: Ambito
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