The porter bag suffered this Monday March 20 his seventh fall in the last 8 days, after trading in positive territory at the beginning of the day, amid growing doubts about the soundness of the global banking system after the acquisition of Credit Suisse bank by UBS Group and local issues. In this context, the ADRs closed with the majority of losses and the country risk exceeded 2,400 points, reaching its highest level since November 24, 2022.
At a turbulent time for financial markets, sovereign bonds in dollars closed with the majority of falls due to greater risk aversion. The main casualties were recorded by Bonar 2041 (-1.8%); followed by the Global 2038 (-0.9%) and the Global 2030 (-0.7%). The rise in Global 2020 stood out, which climbed 2.1%. So, the country risk rose 14 units, to 2,402 basis points, after touching 2,415, its highest level in four months.
“The inflation data for February marked a change in expectations that favored the Dual (bonds)“, said the StoneX brokerage, and pointed out that “the intentions of a gradual and moderate decrease in inflation of the economic team are history, with monthly inflation that is very difficult to break the floor of 5% per month during 2023 and that for March in particular would be above 7%.
“The global outlook worsened. High inflation is now compounded by the instability of the American financial system and the threat of a new global financial crisis”said Martín Polo of Cohen Aliados Financieros.
On Wednesday the Treasury will hold a tender for bonds to cover maturities, which are mostly in private hands, commented analysts.
“We believe that the Government needs a ‘good result’, and therefore, it is likely that it will take advantage of the margin to place in the short term and obtain a positive result“said Portfolio Personal Inversiones.
“Thus, we think that it ‘benefits’ from the new acceleration of inflation to seek demand from the private sector through short ‘Lecer’ (letters), “he estimated.
S&P Merval and ADRs
At the local level, the S&P Merval which started the upward cycle, reversed the trend like its peers in the region and fell 0.3%, to 221,059.08 units, after accumulating a drop of 6.2% in the previous week.
For their part, Argentine papers listed on Wall Street ended with the majority of losses, led by Edenor (-4.2%); Central Puerto (-3.8%), Banco BBVA (-3.3%), Banco Macro (-2%); and Corporación América (-1.8%). On the other hand, the outstanding increases of the day were carried out by Take off (+5.5%), Bunge (+3.2%); View (+2.8%); Adecoagro (+2.5%); and Cresud (+2%).
Source: Ambito
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