S&P Merval continued its streak and jumped almost 14% in 3 days; bonds flew up to 8.2%

The Buenos Aires stock market continued its streak this Wednesday, March 29 and rose strongly encouraged by speculative repurchases of portfolios in short-term positions. Bonds recovered strongly and flew up to 8.2% in a day where the country risk decreased. He happened before a higher risk appetite driven by international markets before the momentary calm after the conflict with the banking sector in the United States and Europe.

BYMA’s leading S&P Merval Index improved 2.8% to 249,104.1 units as temporary closure, to accumulate ora firm rise of 13.6% in three consecutive sessions. In the leading panel, the main increases were for Banco de Valores (+5.5%), Ternium (+5%) and Aluar (+4.6%).

“Came back a slight appetite for risk to the financial markets and that is why global stocks are up this wednesdayeven in Latin America,” said Alexander Londoño, market analyst at ActivTrades.

What happened this day was that the banking turmoil, which began in early March with the failure of Silicon Valley Bank, seems to be subsiding. The sharp falls in the prices of the main stock market indices in the world raised questions about how the Federal Reserve will follow its monetary policy. The sharp rise in interest rates had an impact on the financing of some companies and on the liquidity of the banking sector.

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 registered the majority of increasesby the hand of YPF (+3.7%); Transportadora de Gas del Sur (+3.1%); and take off (+2.7%). On the other hand, the assets of Edenor (-4.3%) and Loma Negra (-1.2%) fell sharply.

Argentine President Alberto Fernández participated this Wednesday in a personal interview with his American counterpart Joe Biden at the White Housea meeting that was later joined by the Minister of Economy Sergio Massa.

Besides, Moody’s Investors Service lowered the outlook for Argentina’s banking system to ‘negative’ from ‘stable’as a reflection of the “deterioration of operating conditions, amid a significant reduction in expected economic growth, with a probable contraction of GDP of 0.5% in 2023 and persistently high inflation, which already exceeds 100% per year”, said the rater.

Bonds and country risk

For his part, sovereign bonds in dollars consolidated their rebound that began the day before after suffering five consecutive falls. The biggest increases were for Bonar 2038 (+8.2%), Global 2035 (+6.7%) and Global 2029 (+6.6%). It should be noted that the bond market collapsed last week after the government announced a bond swap to which official entities had to 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.

For their part, sovereign bonds dollar-linked They operated with the same dynamics as in recent days: while the short tranche closed taker (+0.4%), the long tranche fell 0.5%. At the same time, the dual, with the exception of the TDL23 that rose 0.3%, closed the day with average falls of 0.4%. Regarding the CER segment, the leceres closed with average increases of 0.15% (except for April, which fell 0.2%), while the Bonceres they fell 0.3% on average, the SBS group said.

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.