“It is evident that the index could not overcome the level of 150,000 reached last month, but it also failed to break the level of 136,000 points that would be key for the market not to change its direction,” said Mauro Natalucci of Rava Bursátil.
For their part, the Argentine papers in Wall Street operate mixed. The increases of up to 2% are led by Edenor, Tenaris (2%), Mercado Libre (1.9%) and BBVA (1.6%). On the contrary, Corporación América, Banco Superville (-1.6%) and Cresud (-1.5%) fell to 3%.
Bonds and country risk
Sovereign bonds in dollars, on the other hand, operate with a majority of losses. The declines are led by Global 2035, Bonar 2041 (-1.7%) and Bonar 2035 (-0.9%). On the other hand, Bonar 2029 (2.5%) and Bonar 2038 (2.3%) advanced. Thus, the risk country measured by JPMorgan falls 0.1% to 2,566 basis points.
The agency of Fitch rating lowered Argentina’s long-term sovereign credit rating this Wednesday in one step, going from “CCC” to “CCC-“, so he considered as deep macroeconomic imbalances and a very limited external liquidity position.
The rating agency added that Argentina suffers from a “highly restricted” external liquidity position that it expects will “undermine the ability to pay the debt.”
While, Moody’s warned that the stocks imposed by the Central Bank threaten the normal repayment of corporate debt and noted that they “significantly limit the financing options of companies”. “Most companies and infrastructure companies with debt denominated in foreign currency will resort to a forced debt swap,” Daniela Cuan, senior analyst at Mood’ys Investors Service, warned in a statement.
Source: Ambito
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