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Wednesday, February 1, 2023

ADRs climb up to 8% on Wall Street and drive the S&P Merval, which climbs 4%

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The leading stock index S&P Merval gains 4.95%, and rises to 246,821.50 points, after closing balanced in the previous session and collapsing 9.73% on Wednesday due to expected profit taking.

For its part, the peso, in alternative exchange places, fell, pressured by purchases as a hedge against high inflation and doubts about the future of the domestic economy in a year with presidential elections.

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“Beyond the initial reaction of the financial dollars After the debt buyback announcement, the calm could finally turn out to be temporary due to the scenario of excess pesos,” said an economist.

This is how the market reads the debt buyback

This week, the Government announced a repurchase of external debt for some US$1,000 million, while the Central Bank (BCRA) raised the rate of passive repos by 200 basis points.

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Operators estimate that in the first two days after the debt repurchase was launched, some US$220 million was taken. And, on the other hand, analysts do not rule out that the BCRA raises its reference rate to maintain the balance between the yields of the repos.

“It’s hard to keep rates misaligned,” said Jose Segura, PwC’s chief economist, noting that “keeping them misaligned would have consequences.”

“(Local) equity values ​​continue to be attractive and the market remains bullish,” said a trader, noting that “the recent lows were good for the market to clean itself up and continue its upward path.”

The S&P Mervalwhich accumulates a gain of 19% so far this year, this week marked an intraday record level of 267,244.18 units.

Operators said that the stock market remains attentive to the trajectory of its external peers before renewed fears of a global recession and by the promise of the central banks to persist in raising interest rates.

This is how ADRs work

This expectation today is in line with the good performance shown by the ADRs in Wall Streetwith widespread increases of up to almost 8%.

Edenor is the one that scaled the most this Friday, with an increase of 7.7%, followed by Supervielle, with a jump of 7.6%, Grupo Financiero Galicia, up 7.2%, Banco Macro, up 5.98% , YPF rises 5.70%, Telecom, 5.23%, Pampa Energía recovers 4.66%, BBVA grows 4.26%, IRSA, 3.27%, Central Puerto rises 4.27%, while Loma Negra registers a recovery of 1.97%.

Bonds and country risk: this is how they operate on Wall Street

Meanwhile, there is expectation regarding the evolution of the country risk, which this Thursday had risen, after it fell on Wednesday after the announcement of a debt repurchase by the Economy.

Bonds in dollars, in general, are falling, with falls of between 6% and 1.5%, except for the GD41, which climbs 6% this Friday, and the GD35, which rises 1.2%, the same as the CO26.

Source: Ambito

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