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Thursday, March 30, 2023

Argentine shares plunge as much as 10% on Wall Street amid external turmoil

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This Friday, the Buenos Aires Stock Exchange operates with a drop of 1.98% in its main indicator, the S&P Merval, which is located at 218,744.190 points. Meanwhile, the volume traded in shares exceeds 221.7 million pesos and most of the shares that make up the index are trading in decline, with decreases of up to 4.42%. This occurs in a context in which world markets are greatly affected by the collapse of various banks in the United States and the Credit Suisse crisis, to whose aid the Central Bank of Switzerland had to come.

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Yes ok on Thursday the markets had closed with some better outlook as a reflection of the fact that a group of large US banks that will deposit US$30,000 million to save the First Republic Bank, this Friday, nervousness renewed of investors for the instability in the banking system.

Thus, most of the Latin American stock markets are operating with losses this Friday as a result of uncertainty regarding the health of the banking sector, a fear that began after the fall of Silicon Valley Bank (SVB), which unleashed a crisis financial institution in the United States with risk of global contagion.

Market expectations by the FED

Now, eyes are on the next monetary policy meeting of the United States Federal Reserve (FED) and in the decision you will make about the rate. And it is that a large part of the current crisis is explained by the agency’s decision to raise it to combat inflation, which generated a mismatch in some banking entities that had part of their funds invested in long bonds, very susceptible to political dynamics. monetary.

Argentine shares on Wall Street

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In that context, the ADRs of Argentine companies listed on Wall Street are all in red (with a downward trend). They fall up to 6% and A 10% drop in the shares of the Despegar company is striking what to see this friday

As expected, the ADRs of the financial sector are badly hit, with a fall of 5.98% for Banco Macro, BBVA Banco Francés sinks 5.68%, Grupo Financiero Galicia falls 4.96% and 3.1%. descend Supervielle.

But no sector escapes the negative trend on this day, in which Edenor falls 5.49%, Central Puerto loses 5.32%, YPF subtracts 4.42%, Pampa Energía falls 2.49%, Telecom Argentina loses 4, 7% and Transportadora de Gas del Sur, -4.40%.

Bonds and country risk

Meanwhile, Argentine bonds in dollars fell to 3.3%. Only the AL32 (+2.2%) and the GD41 (+0.3%) show rises and the Argentine country risk rises 1.70% and stands at 2,364 basis points, according to the index prepared by the JP Morgan.

Source: Ambito

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