The Buenos Aires stock market rose strongly that monday april 3 driven by energy papers including the rise of the state oil company YPF was highlighted leaning on a global improvement in oil prices and good local prospects for the sector. While, ADRs closed with strong gains and dollar bonds continued their recovery.
BYMA’s leading S&P Merval Index improved 3.67%, to 254,696.9 units as a provisional closure led by energy segment papersafter accumulating a drop of 0.7% during March. Thus, in the leading panel, the biggest increases were for: YPF (+5.9%), Cablevisión (+5.8%), Transportadora de Gas del Norte (+4.1%), and Pampa Energía (+4%).
The prices of energy papers were supported by the rise in the value of a barrel of oil that was shot this Monday after the surprise announcement this weekend by OPEC members of a drastic cut in production since Mayto drive up prices. In this context, on Wall Street the biggest rises corresponded to YPF (+6.1%), Edenor (+5.6%), and Pampa (+4.9%).
The Ministry of Economy will formally announce on Wednesday the details of the new plan for soybean exportsat times when seeks to halt the loss of scarce foreign exchange reserves. The Central Bank (BCRA) ended the first round of April with sales of US$259 million, the third highest of the year.
In addition, with a view to 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 electionswhich would favor local financial assets“, said Adcap Financial Group.
Bonds and country risk
In the fixed income segment, bonds in dollars extended their recovery and recorded increases of up to 4.5%. Among the advances of the day, stand out Global 2038 (+4.4%); Global 2041 (+3.8%); 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
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