Energy stocks soared as much as 10% as bonds extended their bullish streak This Tuesday, October 25. Argentine assets closed on positive ground buoyed by attractive stocks, traders said. This happened before the new economic announcements to be made by the Minister of the Economy, Sergio Massa, to promote the harvest.
A) Yes, the S&P Merval rose 3% to 143,982.33 points. In this way, the Buenos Aires stock market accumulated a rise of 5.7% in three business sessions. In the leading panel, the main increases were for the energy sector by Edenor (+10%), Central Puerto (+6.1%), Transportadora de Gas del Norte (+5.6%), Pampa Energía (4 .6%) and YPF (+4.2%). In the case of the state oil company, FIX (an affiliate of Fitch Ratings) raised the company’s credit rating as a long-term issuer to “AAA” from “AA+”, in order to monetize its unconventional hydrocarbon resources.
Edenor, for its part, completed its cancellation and voluntary exchange of 9.75% Class 9 Negotiable Obligations for a total of US$98.05 million. In turn, this day was known the budget project raises the possibility that the debts that the provinces have with the Administrative Company of the Electricity Wholesale Market (Cammesa) be settled with co-participation funds.
The operators agree that the energy sector is very busy these days and that in participating this day the volume was unusual. Among the important news for this sector is that this month the company Oleoductos del Valle (Oldelval) will begin to install the pipes of the new oil pipeline that will be carried out between the Neuquén Basin, where Vaca Muerta production emerges, and Puerto Rosales, in the southern municipality of Buenos Aires, Coronel Rosales.
The good day for energy companies was also evident on Wall Street. ADRs closed with general gains, also driven by the rise in the main indices of the New York Stock Exchange. The main gains were for Edenor (+9.5%), Irsa (+6.7%), Central Puerto (+6.5%), Globant (+5.5%) and Pampa Energía (+5.2%). ). This Tuesday the Dow Jones rose 1.1%, the S&P 500 grew 1.6% and the Nasdaq advanced 2.3%.
Bonds and country risk
The main rise among bonds in foreign currency was for the Global 2041 (+6.7%). Behind the, Bonar 2046 (+4.2%), Bonar 2038 (+4%) and Bonar 2030 (+2.5%) rose strongly. “The sovereign dollar bond ‘GD38’ (Global in dollars maturing in 2038) has been the winning strategy. We consider that it is the instrument that has the most risks incorporated in its price and serves as currency hedging,” assured the Adcap Financial Group. Thus, the country risk fell 27 units to 2,492 points.
Since Monday, Argentine bonds have been having a mini bullish rally. “It is not clear what was the main driver of this escalation of the globals, where the weighted average price exceeded the threshold of $22, advancing to $22.55, which is its highest value in 15 wheels. The scenario The emerging market was more pleasant, but we cannot attribute the rebound either, especially given its magnitude. On the side of the Central Bank, the drivers do not come either. The monetary authority opened the week with a participation in the MULC with purchases for just US$ s3 million”commented from PPI.
Source: Ambito
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