Argentine shares on Wall Street flew up to 17% in the first week of the year

For his part, BYMA’s S&P Merval Index gained 2% to 213,794.25 pointscompared to the intraday record of 216,279.74 units recorded towards the second part of the business. The energy and financial sectors were the most demanded and YPF stood out with an increase of 1.01%, and Grupo Financiero Galicia with 4.7%.

The leading shares climbed 5.8% in this first week of the year measured in pesosafter the outstanding increase of 142% in 2022, which positioned the market among the most profitable in the world with Returns of 35% average in dollars.

The shares that performed best in the first week of the year in the leading panel were Transener (+21.7%), Edenor (+16.2%) and Grupo Financiero Galicia (+14.3%).

“Stocks in Latin America remain higher after the US jobs data, which could cause the Federal Reserve to stop raising interest rates aggressively. This supports stocks in the US and Europe, spreading optimism to the Latin American stock markets”said Alexander Londoño, an analyst at ActivTrades.

The Government will enable extraordinary sessions in Congress next week to discuss, among other things, the impeachment of the Supreme Court, while the retail price data for 2022 will also be made official, which could lead the central bank (BCRA) to take some new decision on monetary policy.

“There is a strong issuance that partly goes to the stock market and another to the dollar, with the interest on the ‘Leliq’ bills and the Central Bank (BCRA) passes being the central factors of the ongoing monetary expansion,” said the analyst. Marcelo Rojas.

“A prudent attitude could lead the Central Bank to maintain interest rates (next week) awaiting new data that confirms the slowdown in inflation. On the other hand, if it were to adopt a more lax position, it could decide to moderately reduce rates rates, which would increase the pressure on the ‘CCL'”, explained a bank agent.

Bonds and country risk

In the fixed income segment, on the other hand, Bonds in dollars operated with falls of up to 4.3% thanks to Global 2029. Bonar 2038 (-1.5%), and Global 2038 (-1.4%) also led the declines. Thus, the Argentine country risk under 0.1% to 2,117 basis points.

Let’s remember that on Tuesday, the Ministry of Economy managed to reschedule payments this week for about 3 trillion pesos (about 16,820 million dollars) during the first quarter of the year, after an operation with high bank participation, where it extended payment terms between April 2024 and February 2024.