Argentine stocks start the week in positive territorywhile the Buenos Aires stock market rose strongly due to taking speculative positions amid fears about a crisis in the world banking system and doubts about the local economic future.
On the New York Stock Exchange, the papers of Argentine companies operate with moderate increases. It highlights the progress of Vista Energy (+6%); from IRSA (+3.2%); de Supervielle (+2.9%); and YPF (+2.9%).
Learn more – Follow the price of the blue, official, CCL and MEP dollar in Argentina
Meanwhile, BYMA’s S&P Merval rose 2.3% to 224,341.89 units. The leading index comes from accumulating a drop of 1.1% during the past week.
Last week, the Government announced a bond swap to which public entities must adhere to deliver dollarized securities in exchange for other pesified ones in an attempt to decompress the alternative exchange market.
“With a cautious external climate in the background, and a local political and economic uncertainty that has been accentuating, domestic assets continue to see pressure on their prices, given that operators are deploying defensive tactics in the current complex context where spatial priority is given the preservation of capital”, said the economist Gustavo Ber.
Bonds and country risk
In fixed income, sovereign securities showed a majority of green at the start of the financial day in New York, with rises in the Globalaes that reached up to 0.5% (GD46). But in the Buenos Aires stock market, most setbacks were observed.
In that framework, the Argentine country riskas measured by JP Morgan, it fell for the first time in four days, giving up 0.7% to 2,530 basis points, after touching a maximum since last November 7 (2,549 points).
The scant reserves of the Central Bank (BCRA), high inflation, which exceeds 100% year-on-year, and a high deficit in public accounts are issues that worry investors.
The recent exchange of dollarized bonds “is not a beneficial measure nor a disaster that leads us to the abyss,” The economist Rodolfo Santangelo said in radio statements and pointed out that “with this measure you can reduce the (exchange rate) gap, but for a few days. Here the issue is not who sells the bonds, the issue is who buys it. The problem of the capital market It’s demand, not supply.”
“The impact of the measure in the short term was not welcome. In bonds payable in foreign currency maturing in 2030, the price fall was greater than 4%, while the prices of financial dollars fell close to 3%, due to the expectation of greater selling pressure,” said the consultancy EcoGo.
“Only as a conjecture, the Government could be sowing seeds for an eventual exchange rate unfolding, within the package of measures that have just been announced,” estimated Jorge Vasconcelos, of the Mediterranean Foundation.
“Comparing current Rofex (futures) rates with inflation and the policy rate, we believe rates may continue to rise in the near term if they continue on an overshooting path as discouraging data continues to emerge.” Delphos Investment said. “However, if the economics team manages to tame the macro, these implicit rates look high but the current uncertainty and potentially bad inflation data for March leads to prudence dominating the scene,” she noted.
Source: Ambito
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