Among the shares with the biggest losses of the day, appeared Supervielle Group (-5.5%); Banco Macro (-5.1%); and Telecom (-4.7%).
On Wall Street, meanwhile, the papers of Argentine companies closed falls, in some cases, close to 10%, led by Supervielle Group (-9.1%); Telecom (-5.8%); and Banco Macro (-5.6%).
External stocks fell sharply after two US Federal Reserve (Fed) officials said interest rates should probably have been raised further earlier in the month and strong US economic data.
“The local trend had two reasons: their own and those of others. There are disarmaments of portfolios to take quick profits due to the drag of inflation and political fears, while now the possibility that the ‘Fed’ will increase its rate again shortly”explained a foreign private bank analyst.
Annual inflation to January climbed to 98.8% with the jump in retail prices of 6% in that first month of the year, against the total 94.8% in 2022, with a stable reference rate from the Central Bank (BCRA) in the 107% annual effective.
“The markets begin to incorporate more rate hikes by the Fed during 2023 in the face of the resurgence of inflationary fears,” said Portfolio Personal Investments (PPI).
Bonds and country risk
In the fixed income segment, for its part, dollar-denominated bonds continued their negative streak and lost up to almost 5%. The largest decreases were recorded by Bonar 2029 (-4.5%); Bonar 2035 (-4.2%); and Bonar 2030 (-3.7%).
“Bonds fell on bad global weather based on the latest data coming out fueling expectations of a Fed raising rates further,” said Fundcorp’s Roberto Geretto. “Although from depressed levels, Argentine assets have risen strongly since the end of last year. And finally, in the case of dollar sovereign bonds, it would seem that there are fewer buybacks from the Government. As expected, this bad weather makes it more difficult than the ‘Repo’ of concrete”, estimated.
Thus, the country risk measured by JPMorgan climbed 3.4% to 2,119 basis points, the highest level since last January 3. This indicator returned to the line above 2,000 basis points the day before, for the first time since mid-January.
The Government announced in mid-January the repurchase of bonds for about 1,000 million to improve the debt profile, while this week a source close to the negotiation said that the Ministry of Economy received seven offers for a ‘Repo’ loan for about 1 billion dollars.
The local market will remain inactive until Wednesday, due to carnival holidays, while for next Thursday a strike by bank workers to demand better wages continues.
Source: Ambito
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