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Stocks and ADRs rose against Wall Street; country risk exceeded 2,500 points

Stocks and ADRs rose against Wall Street;  country risk exceeded 2,500 points

The actions that led the promotions were: Loma Negra (+3.2%), YPF (+3.1%), and Telecom (+2.2%). The largest casualties were for Ternium (-2%), Aluar (-1.7%) and Mirgor (-1.7%).

Ternium Argentina presented the results corresponding to the third quarter of this year. “The net profit of that period was US$158.3mn, showing a year-on-year drop of 64.5% versus the third quarter of last year. This represented a margin on net profit of 15.1%, 30.4 percentage points below 45.4% observed in the third quarter of 2021, “SBS reported.

In turn, this day it was also known that YPF ordered a new increase of an average of 6% for gasoline and diesel throughout the country. According to sources, the measure was taken “based on the evolution of the variables that affect the formation of fuel prices.” It is expected that the rest of the companies in the sector will have increases of a similar magnitude.

“Wall Street continues the cautious tone of the latest rounds, to which domestic assets respond mixed”said Gustavo Ber and added: “That is how the S&P Merval improved, this time within firmer and more selective behavior by the main ADRssince operators usually – in contexts of high volatility such as the current ones – favor liquidity as they are the most efficient vehicles to quickly rebalance portfolios“.

Bonds and country risk

In the fixed income market, dollar bonds closed mixed. The increases were led by Bonar 2041 (+3%), the Global 2041 (+1.4%), and the Global 2046 (+1.3%). The largest casualties were for the 2029 bonar (-0.6%) and for Bonar 2035 (-0.5%). While, the country risk measured by JP Morgan banks rose 0.9% to 2,589 basis points.

“The bonds appear weaker, this time through average declines of 1% in their prices in dollars among the main references, with a country risk still around 2,600 basis points since the external bad mood resumes the pressure on the punished parities after attempting a rebound recently”, analyzed Gustavo Ber.

For its part, dollar-linked sovereign bonds had a lot of activity, and the short section of the curve stood out, rising 0.25%, which marked good volume (especially TV23). The duals, in turn, showed a lot of demand and rose 0.75% on average in their four versions. Finally, the CER segment “was requested in the short tranche (until 2023 inclusive) which rose by 0.65% (basically short leceres and bonceres). The longest boncers (with a due date of 2024 onwards) operated without a defined trend, alternating up and down,” Grupo SBS assured.

Source: Ambito

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