Argentine stocks extend their bullish rally this Tuesday, March 28, supported by the advances in emerging markets, but also by the political situation after the announcement of former president Mauricio Macri not to stand as a candidate in the October presidential elections, in the midst of an economy conditioned by deceleration and high inflation.
On the New York Stock Exchange, the Papers of Argentine companies register widespread increases for the second consecutive day, thanks to YPF (+6.2%); Telecom (+6%); Vista Energy (+5.3%); Pampa Energía (+5.1%); and Transportadora Gas del Sur (+3.5%). Only Globant’s assets operate in decline (-0.2%).
Find out more – I followed the price of the blue dollar, official, CCL and MEP in Argentina
On the Buenos Aires stock market, the leading index S&P Merval of BYMA it gained 2.6%, to 239,766,760 points, against a jump of 6.6% in the previous day.
Thus, the S&P Merval has so far advanced from the greater firmness exhibited by the main ADRs, which continue to seek to recover a greater correlation with the external climate and bet on better expectations after the latest political signals (from Argentina)”, commented a financial analyst.
Former President Mauricio Macri announced over the weekend that he drops out of the presidential race, which forces the ruling party to move pieces in search of a strong candidate.
“Macri’s position (…) generated a (bullish) rally in Argentine shares. The market understands that the news enhances and makes the PASO (primary) elections of the (opposition) space of ‘Together for Change’ more competitive “, said from Cohen Financial Allies. “In addition, it conditions the (government) ‘Front of All’, which has yet to define its candidates and an electoral strategy with less than 140 days to go before the primaries (in August),” they narrowed.
Bonds and country risk
For their part, sovereign bonds in dollars returned to operating with a majority of falls, after the Government announced an exchange of dollarized titles by official entities to receive other pesificados.
So, the country risk measured by the JP.Morgan bank rose six units, to 2,535 basis pointsa maximum zone in the last five months.
“The offer of (bonds in) dollars from (among official pension funds) ANSES to iron out exchange volatility is giving results, but it is known that it is something momentary and to the detriment of the debt parities themselves, much more so when annual inflation is above 100% and a complex fiscal deficit is faced”said a private bank analyst.
A debt tender in pesos is scheduled for this Wednesday by the Treasury, where maturities are mainly concentrated in the remainder of the “S31M3” series, almost entirely in private hands after the recent swaps.
Source: Ambito
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