Argentina’s stocks and bonds rose on Monday on hedging positions given rising inflation that rose as high as 7.7% during March, while Argentine companies listed in New York ended mixed as well as dollar bonds. The country risk, meanwhile, remains above 2,400 points.
The S&P Merval improved 2% and closed at 281,295.24 units, after marking a historical maximum value, with which it accumulated a string of seven consecutive sessions on the rise. In the leading panel, the biggest increases were for BBVA bank (+5.7%), Macro bank (+3.7%), and Transener (+3.3%).
“The 7.7% rise in retail prices in Argentina, which projects an inflationary escalation above 100% for this year, induces hedging in the stock market”operators commented.
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“According to high-frequency measurements, Accumulated inflation in the first week of April would be between 2.8% and 3.1% monthly, being the highest weekly records since September 2018“, PPI said.
The first elections of the year were held over the weekend in the provinces of Neuquén and Río Negro. “The tugs in the coalitions are intensifying on the way to the definition of the candidacies, despite which investors still seem inclined to try not to hear such noises and pay more attention to the possible scenario that the elections would leave“said economist Gustavo Ber.
And added that “hence the recent firmness of stocks and bonds even in a climate where fiscal, monetary and exchange rate imbalances prevail.”
For their part, the shares of Argentine companies on Wall Street closed with a mixed trend. The biggest increases were for Corporación Amércia (+10.6%), BBVA (+2.5%), and Despegar (+1.7%). For their part, the main losses corresponded to Loma Negra (-2%), Cresud (-1.3%) and Irsa (-1.1%).
Bonds and country risk
Argentine dollar bonds ended up and down. The biggest increases were for Bonar 2029 (+1.1%), and Global 2035 (+0.7%). The most significant falls were for the Global 2038 (-1.2%) and the Bonar 2038 (-0.7%). The risk, meanwhile, rose 2.2% and closed at 2415 basis points.
For their part, dollar-linked sovereign bonds rose 0.3% in the short tranche and 2% in the long tranche. The Duals operated in the same vein: while the short tranche gained 0.15%, the long tranche rose 0.9%. Regarding the CER segment, the Leceres ended with increases of 0.1% while the Bonceres gained 1%.
“Operators are attentive to eventual progress in the debt swap after the favorable technical opinion that said operation finally received,” said Ber.
This Monday, the opinion of the Faculty of Economic Sciences on the public debt swap proposed by the Government was known, by which official entities must exchange their bonds in dollars (New York Law) for a new Dual bond maturing in 2036which supports the operation generates a neutral effect for the consolidated public sector.
“It must be taken into account that the study is only done on the accounting gains or losses in the portfolios of the evaluated organizations and lacks a comprehensive macroeconomic analysis,” said Portfolio Personal Inversiones.
Source: Ambito
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