Argentine assets closed with strong increases This Tuesday, March 28, supported by advances in emerging marketsbut also in the political conjuncture after the announcement of former president Mauricio Macri not to run as a candidate in the presidential elections. Dollar bonds rose for the first time after the announcement of the dollar bond swap.
On the New York Stock Exchange, the Papers of Argentine companies posted widespread increases for the second consecutive dayby the hand of Telecom (+8.6%); Pampa Energía (+5.8%) and Edenor (+5.7%). This happened contrary to The main Wall Street indices that ended lower in a quiet market about the stability of the banking system, but without indicators in sight that allow you to orient it.
The currency and stock markets of Latin America extended this Tuesday the rises of the previous day, due to the fact that investors bet on risky assets, as the dark clouds over the banking sector in the United States cleared for the moment. So, the Chilean peso, the Mexican peso, the real, and the sol were appreciated as the Bovespa, the S&P/BMV IPC, and the Lima Stock Exchange.
On the Buenos Aires stock market, the leading index S&P Merval of BYMA it gained 3.7%, to 242,385.97 points, which added to the jump of 6.6% in the previous day. The Merval remained positive “from the highest firmness exhibited by the main ADRswhich continue to seek to recover a greater correlation with the external climate and bet on better expectations after the latest political signals (from Argentina)Berry commented.
half in dollars, the S&P Merval topped $620 points for the first time in three weeks. In the leading panel, the biggest promotions went to Telecom (+9.1%), Transportadora de Gas del Norte (+6.6%)and BYMA (+5.8%).
Among the news that had an impact on the markets, it was also highlighted that 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 his part, sovereign bonds in dollars closed with the majority of increases and rose for the first time in six days. The biggest promotions they were for the Global 2038 (+4.3%), the Bonar 2035 (+3.3%) and the Global 2030 (+2.4%). So, the country risk measured by the JP.Morgan bank fell 1.34% to 2495 points.
“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.
For their part, sovereign bonds dollar-linked, like the previous day, operated unevenly: taking the short tranche (+0.3%) and offering the long tranche (-0.3%). Meanwhile, the dual they closed with average increases of 0.6%, and the TDL23 (+0.8%) stood out. Regarding the CER segment, the leceres marginal rises and falls alternated, while the Bonceres they were fell on average 0.3%.
It is scheduled for this Wednesday a debt tender in pesos by the Treasurywhere the maturities are mainly concentrated in the remainder of the “S31M3” series, almost entirely in private hands after the recent exchanges.
Source: Ambito
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