The S&P Merval leading index of Argentine Stock Exchanges and Markets (BYMA) gained 3.3%, to a historical maximum level in pesos of 87,057 units, thus accumulating an improvement of more than 10% in the last eight wheels. While, on Wall Street, Argentine stocks rose to almost 9%.
Locally, the largest increases were registered by the shares of BBVA Francés (8.15%), Banco Macro (6.9%) and Transener (6.25%); while only Richmond closed down (-0.3%). Meanwhile, on the New York Stock Exchange, the most important increases were recorded by BBVA Francés (8.9%), Banco Macro (7.3%) and Grupo Financiero Galicia (7.2%).
Javier Rava, from Rava Bursatil, commented that ” The main Argentine stocks seem unstoppable, wheel after wheel they break any scheme, whatever the context, and leave many of the investors stunned who — in the midst of robust rises — see how the feeling of wanting to take flight is latent“.
He added: “although on several occasions the S&P Merval index measured in pesos is influenced by increases in the exchange rate counted with settlement (CCL), due to the increase in the price of assets with ADR, the increases in Argentine shares are product of a genuine impulse that, precisely, can be followed in ADRs such as Grupo Financiero Galicia (GGAL), Central Puerto (CEPU) or Pampa (PAMP) and other assets that have been able to manifest a ladder of constant increases since the last days of September”.
Another highlight is the great volume operation of the actions that validated the excellent performance, because it is of utmost importance in the analyzes. The numbers were double the previous wheel and leave a good sign in the face of the showy rise, despite failing to tie the Cedears.
The defeat of the ruling party in recent primary elections (PASO) led to the announcement of various economic measures to try to regain ground lost in the elections amid high inflation and slow negotiations with the International Monetary Fund.
“The local market re-enters in a context of elections and with the passing of the days we can observe through the volume traded that the interest in Argentine shares grows”, said Priscila Bruno, an analyst at Rava Bursatil.
Another agent explained that “a lower aversion to global risk for encouraging data from the US economy partly helps emerging markets, although the financial problems of China’s Evergrande remain latent.”
In the fixed income segment, dollar bonds operated unevenly and the Argentine Country Risk registered a slight decrease of 0.1% to close the day at 1,638 basis points.
“The prices (of Global bonds) mark that the risks are high,” said the clearing and settlement agent Neix, adding that “we still see value in the short section of the CER curve (inflation-adjusted bonds) with maturities between August and September 2022 under the hypothesis that the Government will avoid a sudden exchange rate adjustment “.
For Rava, “sovereign bonds in dollars do not seem to show any kind of sign of being coupled to the rises in stocks and they constantly respond with decreases that extend in the different sections of the curve. Today, mixed, although with better performance in foreign legislation “.
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