The Buenos Aires stock market improved that Monday, April 3, encouraged by the rise registered in energy shares due to a rise in global oil prices after Saudi Arabia and other OPEC+ producers announced a cut to their production target. For their part, dollar bonds extend their recovery, at a time when the government is expected to announce the guidelines for a new incentive for agricultural exports in order to swell the scarce reserves of the Central Bank (BCRA).
BYMA’s leading S&P Merval index operated with an improvement of 2.3%, to 251,371 units, after accumulating a slight drop of 0.7% in March. The actions of the oil company YPF stood out with a rise of 4.8%, supported by a global improvement in oil prices and good local prospects for the sector.
Learn more – Follow the price of the blue, official, CCL and MEP dollar in Argentina
Last week “in equities, there was a strong weekly recovery of 12% measured in pesos and half measured in foreign currency,” recalled VatNet Financial Research and explained that “the improvement was led by the energy sector given the good prospects for the sector, especially linked to the huge Vaca Muerta deposits.”
On Wall Street, for its part, the papers of Argentine companies operate with a majority of increases, in a mostly negative day for the main indices of the New York Stock Exchange. Thus, promotions are led by the actions of View (+6.2%); YPF (+4.8%); and IRSA (+3.3%).
“We believe that the announcement of the ‘agro dollar’ measures by the Ministry of Economy on Wednesday will be decisive, since it could bring some calm to the dramatic situation that the BCRA coffers are going through,” said Portfolio Personal Investments.
The announcement of a new special exchange rate for agro-exporters, known locally as the “soybean dollar”, is awaited to favor sales in the sector, which aspires to make agro-exporters liquidate some 15,000 million dollars between the second and third quarter of 2023.
The Argentine agro-export companies liquidated 1,229 million dollars during March, which represented a sharp collapse compared to liquidations of 2,984 million dollars in the same month last year. “The supposed new dollar for soybeans and regional economies is another sign that the exchange market is still not closed,” said Fundcorp’s Roberto Geretto. “This new scheme, unlike the previous soybean dollars, promises fewer dollars and more inflation due to the effects of the drought and because products with some weight in the CPI (retail price index) are added,” he estimated.
Facing the presidential elections, “the two main political coalitions in Argentina are beginning to rearm, and everything seems to point to a scenario of moderate candidates in the next elections, which would favor local financial assets,” Adcap Grupo Financiero said, for this reason “we believe it is time to start building positions in Argentina, aiming for a regime change in October,” he said.
Bonds and country risk
In the fixed income segment, bonds in dollars extend their recovery and post increases of up to almost 5%. Among the advances of the day, stand out Global 2041 (+4.6%); Bonar 2035 (+2.8%); and Global 2038 (+2.8%). They come from accumulating heavy losses in March hit by the announcement of a title exchange to which official entities must adhere to deliver dollarized holdings in exchange for other pesified ones.
For his part, The Argentine country risk remained almost stable, very close to 2,300 basis points, compared to a record high of 2,976 units recorded at the end of July 2022.
The IMF executive board said on Saturday that with the approval of the fourth review of the extended facilities agreement in favor of Argentina, the modification of the goal of net reserves recorded by the BCRA was supported.
“The IMF (International Monetary Fund) is part of the issue because the goals are not met and perhaps it can condition the waivers to some scheme that goes in the way of simulating a devaluation and simplifying the exchange market,” said EconViews.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
