S&P Merval continues its streak: it jumps 13% in 3 days; bonds accelerate rebound after strong punishment

S&P Merval continues its streak: it jumps 13% in 3 days;  bonds accelerate rebound after strong punishment

The Buenos Aires stock market continues on a roll this Wednesday, March 29, before speculative purchases of portfolios, and accumulates a jump of almost 13% so far this week, within the framework of a year marked by political issues ahead of the presidential elections in October.

BYMA’s leading S&P Merval index was up 2.1% at 247,573 units, led by an improvement in energy stocks. Among the rises, the papers of YPF stood out, with 5.2%.

Find out more – I followed the price of the blue dollar, official, CCL and MEP in Argentina

On the New York Stock Exchange, for their part, the Papers of Argentine companies record the majority of increasesby the hand of YPF (+3.6%); Transportadora de Gas del Sur (+3.1%); and Vista Energy (+3%). On the other hand, the assets of Edenor (-4.2%) and Loma Negra (-1.4%) fell sharply.

Over the weekend, the former president Mauricio Macri He ratified that he will not be a presidential candidate in the next general elections, which forces the ruling party and the opposition to define their candidates and positions. “Without particularly bullish news, we believe that Mauricio Macri’s announcement may have triggered the electoral ‘trade’ again. It was very well received by the market, as it brought some clarity on the political front”said Portfolio Personal Investments (PPI).

The improvement in the market does not remove doubts about the future of the domestic economy, which is hit by rising inflation, high fiscal deficit and a long drought that affects exports and the reserves of the Central Bank (BCRA).

Genuine market needs forced the BCRA to part with some US$1,630 million so far in March and around US$2,690 million in 2023. “Comparing March with March of each year, this 2023 has been the worst in the daily average of liquidations since 2004. It falls 37% against the average (…) In this month (March) 1,071 million dollars have been deposited, a 64% drop compared to the same period in 2022,” said analyst Salvador Vitelli. “Operators continue to monitor the drain of foreign currency on a daily basis, and therefore the greater scarcity of net reserves, new measures on supply -such as the ‘soybean dollar 3’ (special dollar for exporters)- and demand are still expected – more restrictions on imports or diversion to another place-since the dynamics are not sustainable”, estimated Ber.

Bonds and country risk

For his part, sovereign bonds in dollars consolidate their rebound that began the day before after suffering five consecutive falls. The highest ascents are for Global 2029 (+4.3%), Global 2035 (+4.2%) and Global 2030 (+3.4%).

The bond market collapsed last week after the government announced an exchange of titles to which official entities must adhere to deliver dollarized holdings in exchange for other pesified ones.

So, the country risk measured by the JP.Morgan bank fell 0.8% to 2,475 points.

It is scheduled for this Wednesday a debt tender in pesos by the Treasury, where the maturities are mainly concentrated in the remainder of the “S31M3” series, almost entirely in private hands after the recent exchanges (around 90%). Is about maturities for 284,000 million pesos.

Source: Ambito

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