In the local stock market, meanwhile, the S&P Merval climbed 3.1% to 257,625.79 units, hand in hand with energy and financial papers, after gaining 4.4% last week.
The most outstanding rises of the day were recorded by the shares of Agrometal (+13.6%); Cresud (+8.6%); Galicia Financial Group (+6.8%); BBVA (+5.6%); Superville Group (+5.1%); and YPF (+4.6%).
Operators agree that the bag is used as portfolio coverage against inflation and devaluation, with the adversity that the fall in reserves also fuels a situation of stagflation, with an official exchange rate that should accelerate its rate of devaluation, according to the market.
The INDEC will disseminate this Tuesday the inflation data for Januarywhich would yield 6%, a high level to drag annual inflation towards almost 100%, after 94.8% in 2022.
The BCRA accumulated a selling balance in the exchange market for about 480 million dollars in February (this Monday it sold about $48 million), a worrying trend due to the loss of reserves also due to the repurchase of bonds. Roberto Geretto of Fundcorp maintained that “thus, it is more than 2,000 million dollars below the reserve target at the end of March of the agreement with the International Monetary Fund (IMF). Therefore, everything is in place for there to be more stocks (exchange) and a new ‘soybean dollar'”.
An IMF mission is carrying out a review of the country’s accounts, within the framework of the agreement signed a year ago that establishes goals for the accumulation of BCRA reserves and the financing of the fiscal deficit, among other objectives. The goal is for international reserves to increase by 4 billion dollars this year.
Analysts expect the government to urgently implement some incentive for agricultural exports by offering a preferential exchange rate, in line with the so-called ‘soybean dollars I and II’ of last September and December.
Globally, investors are eyeing crucial US inflation data, also to be released on Tuesday, which could guide the Federal Reserve’s rate hike strategy. “Waiting tomorrow (Tuesday) for inflation (in Argentina and the United States) vital for the progress of interest rates (…) concerns continue about a possible recession in the future,” said the consultancy Estudio Ber.
Bonds and country risk
In fixed income, sovereign bonds in dollars once again operated with a negative trendwhile the country risk measured by the JP Morgan bank rose just three basis points to a level of 1,964 units.
The declines in sovereign bonds denominated in dollars were led by the Global 2038 (-1.9%), and the Bonar 2041 (-1.5%).
In addition to the inflation data, the market remains attentive this week to the performance of the Ministry of Economy in the first tender of the month, after doubts generated by the maintenance of the debt in pesos by the statement of Together for Change.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
